Iron ore miner Rio Tinto announced on Friday it will resume its shelved operation programs in Canada.

In a statement released by a Rio representative, the Iron Ore Company of Canada recently cleared its new investment worth $US401 million or $A442.21 million to increase an annual concentrate capacity from four million tonnes to 22 million tonnes by 2012.

Sam Walsh, Rio Tinto chief executive, explained that Canada has the potential to invest for iron ore due to its strong demand and its regaining confidence.

“Some uncertainty and potential volatility remain about global economic recovery, but global iron ore and steel markets have rebounded strongly and demand growth looks set to continue,” Mr Walsh said in the statement.

Walsh added that the expansion program in Canada will be a further step for growth and raise the full potential of its IOC operations.

“IOC's assets and high quality product position are used strongly for future iron ore demand growth in North America, Europe and Asia,” Walsh said.

The three-stage operation programs in Canada are expected to generate an annual concentrate capacity to 26 million tonnes.

In 2008, the expansion program in Canada was approved but suspended a year later because of the effects of the global financial crisis.

Rio Tinto's shares in IOC is 58.7 per cent. It operates a mine, concentrator and a pelletizing plant in Labrador City, Newfoundland, and Labrador, including its port facilities in Quebec.