Wedoany.com Report-Jun 29, Rio Tinto and Hancock Prospecting, equal partners in the Hope Downs joint venture, will invest $1.6 billion in the Hope Downs 2 iron ore project in Western Australia’s Pilbara region. Rio Tinto’s contribution amounts to $800 million. The project has secured all required government approvals and aims to maintain production levels for the joint venture.

Hope Downs 2 is part of a series of replacement projects that underline Rio Tinto’s ongoing commitment to the Pilbara region.

The Hope Downs 2 project will develop two new above-water-table iron ore pits at the Hope Downs 2 and Bedded Hilltop deposits. These pits are projected to yield a combined annual production capacity of 31 million tonnes, supporting the long-term output of the joint venture. The ore will be processed at the existing Hope Downs 1 facility, with the first ore and related infrastructure expected to be operational by 2027.

Rio Tinto’s iron ore chief executive, Simon Trott, stated: “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. 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.”

The project involves constructing new infrastructure, including non-process precincts, railway crossings, haul roads, and realigning a 6km section of the Great Northern Highway. During construction, the project is expected to generate over 950 jobs, with approximately 1,000 full-time equivalent positions sustained once operational.

Hope Downs 2 is one of several replacement projects reinforcing Rio Tinto’s commitment to the Pilbara region, which collectively aim for a combined capacity of 130 million tonnes per annum. Over the next three years, Rio Tinto plans to invest more than $13 billion in new mines, plant, and equipment to maintain a mid-term system capacity of 345 to 360 million tonnes per annum in its Pilbara operations. Additionally, a pre-feasibility study is underway for the Rhodes Ridge project, recognized as a significant undeveloped iron ore deposit in the region.

In a separate matter, Rio Tinto has reached a preliminary agreement to pay $138.75 million to settle a US lawsuit related to its Oyu Tolgoi mine expansion in Mongolia. The settlement, awaiting judicial approval from the US District Court in Manhattan, addresses claims from Turquoise Hill Resources shareholders between July 2018 and July 2019, when Rio Tinto held a majority stake.