Rio Tinto and Hancock Prospecting have approved a $US1.61 billion ($2.4 billion) investment to develop the Hope Downs 2 iron ore project in Western Australia’s Pilbara region.
The project, jointly owned by Rio Tinto and Hancock Prospecting, will target the Hope Downs 2 and Bedded Hilltop deposits. Rio Tinto will contribute $800 million of the total investment.
The new development has secured all required state and federal approvals and will comprise two above-water-table pits with a combined annual production capacity of 31 million tonnes.
“Approval of Hope Downs 2 is a key milestone for Rio Tinto, as we invest in the next generation of iron ore mines in the Pilbara,” Rio Tinto iron ore chief executive Simon Trott said.
“These projects are part of our strategy to continue investing in Australian iron ore and to sustain Pilbara production for decades to come, supporting jobs, local businesses and the state and national economies.”
Ore from the new deposits will be hauled to Hope Downs 1 for processing, with first production expected in 2027.
The project is set to create more than 950 jobs during construction and support around 1000 full-time equivalent roles once operational.
Rio Tinto has worked closely with Traditional Owners including the Nyiyaparli, Banjima and Ngarlawangga Peoples, alongside government stakeholders, to ensure the project meets environmental and heritage obligations.
Supporting infrastructure includes a new non-process infrastructure precinct, haul roads, railway crossings and a 6km realignment of the Great Northern Highway.
Hope Downs 2 forms part of Rio Tinto’s portfolio of replacement projects underpinning its Pilbara operations, which will collectively provide around 130 million tonnes per annum (Mtpa).
Between 2025 and 2027, Rio Tinto plans to invest more than $13 billion in new mines, plants and equipment.
The company continues to target a Pilbara system capacity of 345–360Mtpa, with a pre-feasibility study underway at the Rhodes Ridge project, considered the region’s best undeveloped iron ore deposit.
