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PrintRIO Tinto's aspiration of producing 360 million tonnes of iron ore each year is achievable, despite concern about its Pilbara expansion, analysts say.
The mining giant has been showing analysts around its port, rail and mine operations in the north of Western Australia this week, and some believe Rio's cost cutting targets for its iron ore business are very conservative.
Rio has targeted a reduction of $US5 billion ($A5.49 billion) in its overall operating cost cuts by the end of 2014.
It is also yet to decide on allocating a further $US5 billion on an iron ore expansion to achieve 360 million tonnes a year.
UBS analyst Glyn Lawcock believes the company will achieve that tonnage target after this week commissioning a stage of its expanded port, rail and mine operations that will increase output to 290 million tonnes a year.
That is up from expected production of 265 million tonnes in 2013.
"It will happen. It's not a case of when, it's just a case of how,'' Mr Lawcock said.
"They'll ultimately get to 360 million tonnes.''
The target should be achieved by expanding the existing assets beyond that 290 million tonnes per year, pushing assets harder and developing one or two new mines, he said.
The Rio Tinto board is expected to make a decision on the 360 million tonne expansion by the end of the year.
Given that the company has already invested more than $US3.5 billion in infrastructure, Mr Lawcock believes the board is unlikely to wait much longer to approve the expansion.
"Doing nothing is always an option, but a highly unlikely option,'' he said.
In a slide presentation lodged with the ASX this week, Rio said its iron ore mine capacity expansion options over the next five years ranged from 300 million tonnes to 375 million tonnes.
Rio is looking to remove around five per cent, or $US240 million, of costs from its iron ore business, a target which is easily achievable, Mr Lawcock said.
A lower Australian dollar had helped with costs.
Rio Tinto sacked thousands of workers and slashed $US1.5 billion to return to profitability in the first half of 2013.
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