The Hope Downs joint venture (JV) is about to get stronger, with Rio Tinto and Hancock Prospecting to invest $US1.6 billion ($2.4 billion) in the development of the Hope Downs 2 iron ore project.
Located in the Pilbara region of Western Australia, the Hope Downs 2 project will mine ore from the Hope Downs 2 and Bedded Hilltop deposits.
Once mined, the ore will be transported to the Hope Downs 1 iron ore mine for processing. Both deposits are targeting first ore in 2027 and are expected to have a combined production rate of 31 million tonnes per annum (Mtpa).
The Hope Downs 2 project is expected to create more than 950 jobs during the construction phase. Once the mine is operational, it will help Rio Tinto sustain about 1000 full-time equivalent roles at the Greater Hope Downs operation.
With all necessary State and Federal Government approvals now in place, the Hope Downs 2 project will sustain production from the Hope Downs JV into the future.
“Approval of Hope Downs 2 is a key milestone for Rio Tinto, as we invest in the next generation of iron ore mines in the Pilbara,” Rio Tinto chief executive officer iron ore Simon Trott said.
“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.
“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.”
Hope Downs 2 is one of several replacement mines planned for Rio Tinto’s iron ore business in the Pilbara. Others include Western Range, Brockman Syncline 1, West Angelas, and Greater Nammuldi.
Each of these replacement mines are expected to have a combined total capacity of about 130Mtpa. Furthermore, Rio Tinto is aiming to increase its annual capacity in the Pilbara from 345Mtpa to 360Mtpa.
Aiding this objective is the Rhodes Ridge project, which has a pre-feasibility study underway and is one of the world’s largest and highest quality undeveloped iron ore deposits. It is targeting an initial annual capacity of up to 40 million tonnes and first ore by 2030.
Rio Tinto is expected to invest more than $US13 billion on new mines, plant and equipment between now and 2027.