Rio Tinto (ASX:RIO) is committing US$800 million ($1.23 billion), as a part of a larger US$1.6 billion investment with privately-held Hancock Prospecting, to further develop the Hope Downs 2 joint venture project in the Pilbara region of Western Australia.
After receiving government approvals and engaging with the Nyiyaparli, Banjima and the Ngarlawangga Peoples, funds will be used to build a non-process infrastructure precinct, railway crossings, haul roads, and realigning 6km along the Great Northern Highway.
The forecast iron ore project will have a combined production capacity of 31 million tonnes per annum, implementing two new above-water-table pits to sustain the project’s prospective future.
The company intends to invest an additional $13 billion on new mine sites, plants, and equipment for the project over the next three years.
CEO Simon Trott says this investment marks a key milestone for the company as it looks towards the next generation of iron ore production in the Pilbara region.
“These projects are part of our strategy to continue investing in Australian iron ore and to sustain Pilbara production for decades to come, supporting jobs, local businesses, and the state and national economies,” Trott says.
The company believes this expedition will create more than 950 jobs during the construction phase, as well as sustaining another 1,000 roles at the greater area.
“The Pilbara has been critical to global steel supply for more than 60 years, and we are committed to ensuring it remains so well into the future,” Trott says.
Rio Tinto is currently working towards a Prefeasibility Study at its Rhodes Ridge Project, as an extension of its plans to achieve a mid-term system capacity between 245 and 360 million tonnes per annum from prospects in the Pilbara region.
Now with a market capitalisation of $37.8 billion, Mining.com.au reported that Rio Tinto spiked above its 90-day average volume by 235% last week (20 June).
Hope Downs is an equal joint venture between Rio Tinto and Hancock Prospecting, first established in 2006 beyond the companies shared history that dates back to the early 1960s.
Operating in 35 countries, Rio Tinto is a mineral explorer specialising in iron ore, copper, aluminium, and other minerals with an expedited focus on supporting the global shift towards clean energy.
Write to Maddison Elliott at Mining.com.au
Images: Rio Tinto
