Mining giant Rio Tinto (ASX: RIO) will appeal a decision by the New South Wales Supreme Court ordering the company to play Australia's richest person, Gina Rinehart, $200 million.

Besides Ms Rinehart, who owns Hancock Prospecting, a third company owned by another female mining heiress, Angela Bennett, is also due for almost $200 million payout as part of the court's decision.

Justice David Hammerschlag ordered Rio it May to pay the two companies royalties on the basis of a 43-year-old agreement made by the fathers of Ms Rinehart and Ms Bennett with Rio.

Rio, which has a long-term iron ore joint venture with the companies owned by the two female mining magnates, said on Tuesday that it has filed with the NSW Supreme Court a notice of intention to appeal.

Meanwhile, Rio will continue with plans to increase its iron ore production in the next 18 months premised on orders from China remaining high. However, Rio is assessing if the production target hike could be achieved by using existing mines in a bid to cap costs.

The second-largest miner said infrastructure work is underway to expand its capability to increase iron ore production to 360 million tonnes a year by the end of 2014. The expansion would cost Rio $5 billion, analysts said.

"With the way markets for mining are going, Rio Tinto will be looking at working the assets it already has up and running much harder ... Why take on the added costs of digging new mines in this environment?" Reuters quoted MineLife analyst Gavin Wendt.

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