February 25, 2010 (FinancialWire) — Atlas Copco (STO: ATCOA) (STO: ATCOB) said it has been selected by Rio Tinto (NYSE: RTP) to develop one of two rapid tunneling concepts for underground block cave projects.

The company said that the new machine will enable fast and cost-effective construction of mines.

Rio Tinto’s development of projects such as Resolution Copper in Arizona and Oyu Tolgoi in Mongolia will use an underground block cave mining method. The method requires construction of significant underground infrastructure prior to the production of ore.

The Atlas Copco Modular Mining Machine is a mechanical rock excavation system that the company expects will be able to achieve more than twice the performance of normal tunneling methods in the expected ground conditions.

Atlas said that cooperation between Rio Tinto and Atlas Copco on the development of this machine has been underway for “some time” and is approaching reality. London-based Rio Tinto is an international mining group whose major products are aluminum, copper, diamonds, energy, gold, industrial minerals and iron ore. The company’s activities span the world but are strongly represented in Australia and North America with significant businesses in South America, Asia, Europe and southern Africa.

Stockholm-based Atlas Copco is an industrial group with positions in compressors, construction and mining equipment, power tools and assembly systems.

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