Rio Tinto approves Pilbara iron ore investment

(Posted on 04/10/18)

Rio Tinto, together with joint venture partners Mitsui and Nippon Steel & Sumitomo Metal, have approved an investment of $1.55 billion (Rio Tinto's 53 per cent share $820 million) to sustain production capacity at two projects which form part of the Robe River Joint Venture in the Pilbara region of Western Australia.

The joint venture partners will invest $967 million (Rio Tinto share $513 million) to develop the Mesa B, C and H deposits at Robe Valley, and $579 million (Rio Tinto share $307 million) in developing Deposits C and D at the existing West Angelas operation. These investments enable Rio Tinto to sustain production of the Pilbara Blend, the world's most recognised brand of iron ore, and its Robe Valley lump and fines products, which are highly valued by long-term customers.

Subject to government and environmental approvals, construction of both projects is expected to start next year with an estimated 1,200 jobs created during this phase. First ore is currently anticipated from 2021. These investments will also provide significant opportunities for local businesses as part of Rio Tinto's commitment to local procurement and supporting WA businesses.

Once operational, both projects will feature the latest technology with 34 existing haul trucks to be retrofitted with Autonomous Haulage System (AHS) technology, delivering safety and productivity gains to the business.

Rio Tinto Iron Ore chief executive Chris Salisbury said "The development at West Angelas will help sustain production of the Pilbara Blend, the industry’s benchmark premium iron ore product, while the additional Robe Valley deposits will enable us to continue to provide a highly valued product to our long-term customers across Asia."

"The approval of these two projects highlights the strong pipeline of development options within our portfolio as we remain focused on our value-over-volume strategy."

Rio Tinto's funding commitment for both projects of $820 million forms part of the company's existing replacement capital guidance of around $2.7 billion from 2018 to 2020.

Rio Tinto owns a 53 per cent holding in the Robe River Joint Venture, Mitsui 33 per cent and Nippon Steel & Sumitomo Metal Corporation 14 per cent.

Latest News

ADM and Mitsubishi form strategic agriculture supply chain alliance

ADM and Mitsubishi Corporation have signed a non-binding memorandum of understanding to form a strategic... Read more

ESL Shipping and SSAB extend cooperation in raw material transports

ESL Shipping and global steel manufacturer SSAB have agreed on a multi-year extension of the agreement... Read more

Sakatti copper project in Finland awarded ‘Strategic Project’ status by EU

Anglo American’s Sakatti copper and polymetallic project in Finland has been designated as a &... Read more

FEFAC calls for targeted transatlantic feed trade agreement

FEFAC, representing the EU compound feed and premix manufacturers, noted with deep concern the announced... Read more

Cargill inaugurates new corn milling plant in Gwalior, India

Catering to the growing demand from India’s confectionery, infant formula, and dairy sectors,... Read more

Metal Park launches storage hub in KEZAD

Khalifa Economic Zones Abu Dhabi – KEZAD Group, the largest operator of integrated and purpose... Read more

Rio Tinto to invest $1.8bn to develop Western Australia Brockman mine

Rio Tinto will invest $1.8 billion1 to develop the Brockman Syncline 1 mine project (BS1), extending... Read more

Canadian steel industry denounces tariffs on Canada

Catherine Cobden, President and CEO of the Canadian Steel Producers Association (CSPA), has released... Read more

Study: Enough scrap to meet rising U.S. demand for recycled steel

Enough domestic ferrous scrap is available for electric arc furnace (EAF) steelmakers to supply nearly... Read more

Cargill and Hafnia launch Seascale Energy

Cargill’s Ocean Transportation business and leading tanker shipping company, Hafnia, have joined... Read more