Rio Tinto has announced its intention to expand its iron ore operations in Canada.
The investment of over US$400 million follows the miner yesterday stating it has put its Australian iron ore expansion on hold after the announcement of a resources super tax.
With the 40% Federal Government tax on all mining profits seeing fierce opposition from the mining community, Rio said it looked to expand in Canada as there is greater attractiveness for investing in the country than Australia.
This move comes after Canadian Finance Minister Jim Flaherty said that Australia’s resources super tax may lend a huge competitive to Canada’s mining industry.
Rio is currently reviewing the potential impact of the tax on its Australian operations.