Rio plans $71 mln Hope Downs feasibility study

SYDNEY, Dec 24 (Reuters) - Rio Tinto Ltd (RIO.AX: Quote, Profile, Research, Stock Buzz), which is battling a takeover approach from rival BHP Billiton Ltd (BHP.AX: Quote, Profile, Research, Stock Buzz), said on Monday it has approved a feasibility study to expand the Hope Downs iron ore mine at an estimated cost of US$71 million.

The study will assess the possibility of increasing annual capacity to 320 million tonnes by 2012. ($1=A$1.15) (Reporting by Denny Thomas;)