Mining giant Rio Tinto (ASX:RIO) intends to invest $1.8 billion to develop the Brockman Syncline 1 Mine Project in the Pilbara region of Western Australia.
Brockman Syncline 1 is considered a large-scale investment within the Brockman region, which encompasses Brockman 4 and Greater Nammuldi. The project will have capacity to process up to 34 million tonnes per year of iron ore.
The first ore is now scheduled for 2027, having previously been anticipated in 2028.
Rio Tinto, which has a market capitalisation of $43.61 billion, says construction of the project begins this year and includes a new primary crusher and overland conveyor, as well as a non-process infrastructure precinct and a temporary camp for workers.
The project is expected to create about 1,000 jobs during construction and once operational, Brockman Syncline 1 will sustain a workforce of 600 people.
Rio Tinto Iron Ore CEO Simon Trott says securing this project extends the life of the Brockman hub.
“Our tranche of new mines will ensure we can continue to supply the globe’s ongoing need for iron ore, for decades to come,” Trott says.
As Mining.com.au previously reported, the Department of Industry, Science and Resources’ (DISR) latest issue of its Resources and Energy Quarterly (December 2024) forecasts lower prices over the outlook period will in turn reduce Australia’s export earnings for iron ore by more than $30 billion to $107 billion in 2024–25 before easing to $99 billion in 2025–26.
DISR and the Office of the Chief Economist expect the outlook to remain soft due to a strong supply outlook and weaker steel demand. From an estimated average price of around US$92 a tonne (FOB) in 2024, they expect benchmark price to average US$80 in 2025, before declining further to US$76 in 2026.
Further, the company adds work is continuing on the Prefeasibility Study for the Rhodes Ridge Project which is targeting an initial capacity of up to 40 million tonnes per year of iron ore. The first ore is targeted by 2030.
Rio Tinto is a global mining company that is focused on iron ore, copper, aluminium, and a range of other minerals and materials needed for the world to cut carbon emissions to net zero.
Write to Aaliyah Rogan at Mining.com.au
Images: Rio Tinto
