Rio Tinto has demonstrated its plans to extend its development pipeline in Western Australia’s Pilbara region well into the next decade.
The company will look to invest more than $US13.3 billion ($20.76 billion) into new mines, plant and equipment over the next three years.
Speaking at the company’s annual general meeting (AGM), Rio Tinto chair Dominic Barton reaffirmed the company’s long-term commitment to its Pilbara iron ore operations, which have long been a cornerstone of Rio’s global business.
“In the Pilbara, our development pipeline extends well into the next decade and beyond with new mines,” Barton said. “Projects including Western Range, West Angelas, Hope Downs 1, Greater Nammuldi and Brockman 4 expansion.”
This pipeline comes off the back of more than $US8.5 billion the company has already poured into the Pilbara over the past three years.
In March, the company announced it was planning to invest $US1.8 billion to develop the Brockman Syncline 1 (BS1) project in the west Pilbara region.
BS1 is part of Rio Tinto’s ‘world-class’ iron ore business and comprises the Brockman 4 and Greater Nammuldi mines. It will have the capacity to process up to 34 million tonnes of iron ore per annum by leveraging existing plants.
Rio achieved first ore at Western Range on April 17, which is a joint venture with China Baowu Steel Group.
The mine is set to deliver 25 million tonnes of iron ore per year and is a key part of Rio Tinto’s strategy to sustain production capacity in the region.
Rio Tinto’s expansion plans come as global demand for high-grade iron ore remains strong, particularly from Asia, benefiting Rio alongside BHP and Fortescue.
BHP chief commercial officer Rag Udd said Chinese steel makers will maintain current production rates for several more years and that prices for iron ore should remain above $US80 a tonne.
