PERTH: Rio Tinto and Hancock Prospecting will invest $1.61 billion to develop the Hope Downs 2 iron ore project in Western Australia’s Pilbara region, the companies announced. Rio Tinto’s share of the investment is $800 million.
The project, which has received all necessary state and federal approvals, will mine the Hope Downs 2 and Bedded Hilltop deposits. It will include two new above-water-table iron ore pits with a combined annual production capacity of 31 million metric tons, sustaining output from the Hope Downs Joint Venture.
Rio Tinto Iron Ore Chief Executive Simon Trott called the approval a “key milestone” for the company as it invests in the next generation of Pilbara mines.
“These projects are part of our strategy to continue investing in Australian iron ore and to sustain Pilbara production for decades to come,” Trott said. “The Pilbara has been critical to global steel supply for more than 60 years, and we are committed to ensuring it remains so well into the future.”
The project includes new infrastructure, railway crossings, haul roads and the realignment of a 6-kilometer (3.7-mile) section of the Great Northern Highway. Rio Tinto said it has engaged with Indigenous groups, including the Nyiyaparli, Banjima and Ngarlawangga Peoples, to ensure responsible heritage and environmental management.
Ore from the sites will be processed at Hope Downs 1, with first production expected in 2027. Construction will create more than 950 jobs, while ongoing operations will support about 1,000 full-time roles.
Hope Downs 2 is part of Rio Tinto’s broader Pilbara expansion, which aims to sustain production of 345 to 360 million metric tons annually. The company plans to invest more than $13 billion in new mines and infrastructure from 2025 to 2027.
Rio Tinto and Hancock Prospecting have been equal partners in the Hope Downs Joint Venture since 2006. The venture’s first mine, Hope Downs 1, began production in 2007.
A pre-feasibility study is also underway for the Rhodes Ridge project, considered the Pilbara’s best undeveloped iron ore deposit.