Business news for Mon, 17 Dec 2007 & with word rio. 5 news.

MINING giant Rio Tinto is set to spend $US300 million ($351.06 million) to develop the Eagle nickel mine in Michigan in the United States.

BHP Billiton has suspended its $10bn on-market buy-back of its UK-listed shares until further notice, reflecting the fact that it is expected to make a bid for rival Rio Tinto

LONDON (MarketWatch) -- Rio Tinto said it's going to invest $300 million in the development of Eagle, a high-grade nickel and copper mine in Michigan. Eagle, in northwest Marquette County near the City of Marquette, will be the only primary nickel mine in the U.S. and first production is expected to begin in late 2009. Eagle is projected to deliver 16,000 metric tons of nickel per year over seven years until 2016. It will also produce valuable co-products of copper, platinum, palladium and cobalt. Rio Tinto is also in final contract negotiation to develop a nickel mine at Sulawesi in Indonesia, with an initial operation of 46,000 metric tons per year with first production commencing by 2015.

RIO TINTO and its joint venture partner will spend over $1 billion to expand the Kestrel coal mine in Queensland in a bid to satisfy growing demand from China.

SHARES in BHP Billiton have plunged today after the company suspended the $US10 billion ($11.63 billion) buyback of its London-listed stock and Rio Tinto stock has also fallen hard.