Rio Tinto and Hancock Prospecting commit $2.5b to Pilbara iron ore JV
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The news: Mining giants Rio Tinto and Hancock Prospecting plan to invest USD1.6 billion ($2.47 billion) in developing the Hope Downs 2 iron ore project in the Pilbara region in Western Australia.
The numbers: Rio Tinto will contribute USD800 million to the joint venture project, which has received all necessary state and federal government approvals. At 11:28am AEST Rio Tinto shares had risen 2.4% to $104.29.
The two new above-water-table iron ore pits will have a combined total annual production capacity of 31 million tonnes when fully developed.
The context: Mined ores from the Hope Downs 2 and Bedded Hilltop deposits will be transported to Hope Downs 1 for processing with first ore from the deposits and associated infrastructure scheduled for 2027.
The project includes new non-process infrastructure precincts, railway crossings and haul roads, as well as realigning a 6km section of the Great Northern Highway.
Rio Tinto and Hancock Prospecting are equal partners in the Hope Downs Joint Venture, which was first established in 2006.
Between 2025 and 2027, Rio Tinto expects to invest more than USD13 billion in new mines, plant and equipment.
The source: ASX
