Rio Tinto, Hancock Invest $1.6 Billion in Australia’s Project

Two mining giants – Rio Tinto and Hancock Prospecting – on Tuesday announced that they will invest $1.61 billion (Rio Tinto share $800 million) to develop the Hope Downs 2 iron ore project in Western Australia’s Pilbara region.

The Hope Downs 2 project, to mine Rio Tinto and Hancock Prospecting’s Hope that the Downs 2 and Bedded Hilltop deposits, have now received all necessary state and Australian Government approvals.

The two new above-water-table iron ore pits will have a combined total annual production capacity of 31 million tonnes and will sustain production from the Hope Downs Joint Venture (JV) into the future.

Rio Tinto Iron Ore Chief Executive Simon Trott said that approval of Hope Downs 2 is a key milestone for Rio Tinto, as thy were investing in the next generation of iron ore mines in the Pilbara.

He said that these projects were part of Rio Tinto’s 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,” Trott said.

Rio Tinto has engaged with the Nyiyaparli, Banjima and the Ngarlawangga Peoples, along with relevant government stakeholders, to ensure the responsible management of heritage and the environment in development of the project.

The project includes new non-process infrastructure precincts, railway crossings and haul roads, as well as realigning a 6 km section of the Great Northern Highway. Ore mined at the two sites will be transported to Hope Downs 1 for processing, with first ore from the deposits and associated infrastructure scheduled for 2027.

More than 950 jobs will be created during construction and, once operational, the Hope Downs 2 project will help sustain a workforce of about 1000 full time equivalent roles at Greater Hope Downs.

Hope Downs 2 is part of Rio Tinto’s tranche of replacement projects that underpin the company’s ongoing commitment to the Pilbara, and which will have combined total capacity of about 130 million tons per annum (MTPA).

Rio’s Future Investments

During the next three years (2025-2027), Rio Tinto expects to invest more than $13 billion on new mines, plant and equipment.

The company has a clear pathway to achieve and sustain mid-term system capacity of 345 to 360 MTPA from its Pilbara iron ore business, with a pre-feasibility study also underway on the Rhodes Ridge project, the Pilbara’s best undeveloped iron ore deposit.

Rio Tinto and Hancock Prospecting are equal partners in the Hope Downs JV, which was originally established in 2006, with Rio Tinto and Hancock Prospecting’s shared history extending back to the early 1960s. While Hope Downs 1 started production in 2007, followed by Hope Downs 4, with first ore in 2013.