Rio Tinto Opens $2B Pilbara Iron Ore Mine With China's Baowu
Rio Tinto Plc (NYSE:RIO) disclosed on Thursday that it has officially inaugurated its newest iron ore mine, Western Range.
The Western Range is one of several replacement projects, collectively boasting an annual capacity of approximately 130 million tonnes.
The mine is designed to produce up to 25 million tonnes of iron ore annually, and it has the potential to sustain the existing Paraburdoo mining hub for as long as two decades.
The $2 billion project, a joint venture between Rio Tinto (54%) and Baowu (46%), was finished on time and within budget.
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This endeavor included constructing a primary crusher and an 18-kilometer conveyor system that connects to the existing Paraburdoo processing plant.
The new mine ensures stability for Paraburdoo’s workforce of over 880 residential and FIFO (fly-in/fly-out) employees.
The Western Range project is notable as Rio Tinto’s inaugural endeavor to incorporate a co-designed Social, Cultural and Heritage Management Plan (SCHMP) alongside the Yinhawangka Traditional Owners.
Rio Tinto Chief Executive Jakob Stausholm said, "Opening Western Range is an important step in Rio Tinto's extension plans in the Pilbara and ensures the longevity of one of our oldest mining hubs, Paraburdoo, which began operating in 1972.”
"Partnering with Baowu ensures our biggest customer directly benefits with a consistent, dedicated supply of Rio Tinto's world leading Pilbara Blend iron ore."
Notably, over the next three years (2025-2027), Rio Tinto anticipates investing more than $13 billion in new mines, plants, and equipment.
This follows an investment of approximately $8.5 billion in the Pilbara during the preceding three-year period (2022-2024).
In May, the company disclosed that Stausholm will step down from his role later this year and disclosed 2029 bauxite expansion in Queensland with a feasibility study for a 20 million tonne boost to Weipa output.
Price Action: RIO shares are down 0.57% at $58.89 at last check Friday.
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