Article courtesy of Business News.
RIO TINTO and Hancock Prospecting will invest $US1.6 billion ($2.47 billion) in the development of the joint venture’s Hope Downs iron ore asset in the Pilbara.
Iron ore giant Rio Tinto will foot $US8oo million ($1.23 billion) of the investment, the company said in its final investment decision announcement in late June.
Hope Downs 2 is part of Rio Tinto’s pipeline of replacement projects, which is expected to have a combined capacity of 130mtpa.
More than $13 billion is expected to be invested towards new mines, plant and equipment in the region over the next three years.
Rio’s iron ore chief executive, Simon Trott, said the approval was a key milestone for the company.
“The Pilbara has been critical to global steel supply for more than sixty years, and we are committed to ensuring it remains so well into the future,” he said.
Hancock Prospecting chair GinaRinehart thanked Rio and the workers on Hope Downs, but called for regulatory change.
“If we want to see projects like Hope Downs 2 continue to be built, Australia needs to honestly confront and urgently address the reasons for its recent years of declining investment,” she said.
The Hope Downs 2 project will mine the Rio-Hancock joint venture’s Hope Downs 2 and Bedded Hilltop deposits, with the ore to be transported to Hope Downs 1 for processing.
First ore from the deposits is scheduled for 2027.
