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PERTH, Nov 9 AAP

November 09 2012, 7:41PM

Rio Tinto has halted expansion plans for an accommodation project for fly-in, fly-out workers in Western Australia.

The global miner said it would terminate remaining works for the Rocklea Palms Pilbara project from November 29.

The contractor, Diploma, would not proceed beyond the building licence documentation phase, Rio said.

"The project has been deemed non-essential in the current expansion program for Rio Tinto and as a result the project has been put on hold indefinitely," Rio Tinto said in a statement.

Rio says Diploma is still required to submit a building application for the accommodation units, dry mess and kitchen design.

Rio also said the separate $49 million Wickham accommodation expansion project in WA would still go ahead.

It comes as resource companies shelve expansion plans on major projects following volatility in commodities prices.

Rio Tinto, which is reliant on iron ore, posted record iron ore production for the September quarter.

In August Rio announced it would cut 140 jobs in central Queensland and 270 administration jobs in Melbourne and Sydney.