Australian miner Rio Tinto announced on Wednesday that it has decided a US$475 million project on iron ore to raise production at its Iron Ore Company of Canada (IOC) to fulfill recent strong global demand.

This new investment will bring up annual production for 22 million and a further rise to 25 million tons. Rio has recently declined the possible acquisition by its rival BHP Billiton.

Rio also has expanded its production on Australian Pilbara iron ore to 220 million tons by 2009 and it believe it will reach production by another 100 million tons.