Rio Tinto and Hancock invest $1.6 billion in iron ore project in Australia

Australian-British mining company Rio Tinto and Australian producer Hancock Prospecting are investing $1.6 billion in the Hope Downs 2 iron ore project in the Pilbara region (Western Australia). This is stated in a Rio Tinto press release.

Hope Downs 2, which involves the development of the Hope Downs 2 and Bedded Hilltop deposits, has already received all the necessary permits from the state and federal governments.

The two new iron ore open pit mines, located above the water table, will have a combined annual production capacity of 31 million tons and will support the joint venture’s production in the future. The project includes new non-technological infrastructure, railway crossings, and transport routes.

Ore mined at the two new sites will be transported to the Hope Downs 1 deposit for processing. First production is scheduled for 2027.

Hope Downs 2 is part of Rio Tinto’s replacement projects. Over the next three years (2025-2027), the company plans to invest more than $13 billion in new mines, factories, and equipment.

As noted, Rio Tinto has a clear path to achieving and maintaining medium-term system capacity of 345 to 360 million tons per year for its Pilbara iron ore business. Work is also continuing on a preliminary feasibility study for Rhodes Ridge, one of the largest and highest-quality undeveloped iron ore deposits in the world. Here, the company plans to achieve an initial capacity of up to 40 million tons per year and obtain the first ore by 2030.

In early June this year, Rio Tinto and Baowu officially opened the Western Range mine, which has a production capacity of 25 million tons per year. The project cost $2 billion and was completed on time and within budget.