The world's second-largest miner, Rio Tinto (ASX: RIO) will push through with its $5 billion plan to expand the Pilbara iron ore mine despite the lower price of iron ore in the international market. The mining giant has planned the expansion in 2011.

The decision to push through is because of Rio's target to produce 360 million tonnes of iron ore per annual. Although shareholders had been pushing Rio to preserve the money and hold expansion, Rio Chief Executive Sam Walsh told analysts in London the Pilbara mine expansion Is inevitable, but the mining giant still needs to specify the timetable under the current plan which the Rio board will deliberate for approval in November.

He said Rio could be flexible with the planning in terms of timetable for the completion of the venture.

"What will drive the expansion will be what the market demands physically. We are going to be very rational and logical about this to ensure we are delivering value to shareholders and not just proceeding with something because it's on the books," Mr Walsh explained.

Analysts believe Rio would approve the Pilbara expansion before the end of 2013.

However, the plan by Rio to mine the Koodaiden deposits would likely be opposed by environment groups because it lies next to the Karijini National Park. The mine is about 100 km west-northwest of Newman, and has the potential to produce 35 metric tonnes per year which could even rise to 70 by 2030.

Rio plans to mine the area with a sequence of open cuts. Most of the puts are above the water table with only minor dewatering needed.

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