Rio Tinto (ASX:RIO) and Hancock Prospecting will invest $1.6 billion to develop the Hope Downs 2 iron ore project in Western Australia’s Pilbara region. Rio Tinto is a leading global mining group that focuses on finding, mining, and processing the Earth’s mineral resources. The company’s operations span the globe, but it has a significant presence in Australia, particularly in the iron ore sector. All necessary State and Federal Government approvals have been received for the project.
The Hope Downs 2 project involves mining Rio Tinto and Hancock Prospecting’s Hope Downs 2 and Bedded Hilltop deposits. The two new above-water-table iron ore pits will have a combined total annual production capacity of 31 million tonnes, sustaining production from the Hope Downs Joint Venture into the future. First ore from the deposits and associated infrastructure is scheduled for 2027. The project includes new non-process infrastructure precincts, railway crossings, and haul roads, as well as realigning a 6-kilometre section of the Great Northern Highway.
More than 950 jobs will be created during construction, and once operational, the Hope Downs 2 project will sustain a workforce of about 1,000 full-time equivalent roles at Greater Hope Downs. Rio Tinto expects to invest more than $13 billion on new mines, plant, and equipment over the next three years (2025-2027). The company aims to achieve and sustain mid-term system capacity of 345 to 360 million tonnes per annum from its Pilbara iron ore business, with a pre-feasibility study also underway on the Rhodes Ridge project.
Rio Tinto Iron Ore Chief Executive Simon Trott highlighted the project’s importance, stating it will support jobs, local businesses, and the state and national economies. He also emphasised the Pilbara’s critical role in global steel supply and Rio Tinto’s commitment to its future.
