Rio Tinto, Hancock Prospecting to invest $1.6B to develop Hope Downs 2 project
The company states: ' Rio Tinto (RIO) and Hancock Prospecting will invest $1.61B to develop the Hope Downs 2 iron ore project in Western Australia's Pilbara region. The Hope Downs 2 project, to mine Rio Tinto and Hancock Prospecting's Hope Downs 2 and Bedded Hilltop deposits, has now received all necessary State and Federal Government approvals. The two new above-water-table iron ore pits will have a combined total annual production capacity of 31 million tonnes and will sustain production from the Hope Downs Joint Venture into the future. Rio Tinto has engaged with the Nyiyaparli, Banjima and the Ngarlawangga Peoples, along with relevant government stakeholders, to ensure the responsible management of heritage and the environment in development of the project. The project includes new non-process infrastructure precincts, railway crossings and haul roads, as well as realigning a 6-kilometre section of the Great Northern Highway. Ore mined at the two sites will be transported to Hope Downs 1 for processing, with first ore from the deposits and associated infrastructure scheduled for 2027.'
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Yahoo
8 hours ago
- Yahoo
Rio Tinto and Hancock commit $1.6bn for Australia's Hope Downs 2 project
Rio Tinto and Hancock Prospecting have announced plans to invest $1.6bn in the Hope Downs 2 iron ore project in Western Australia's Pilbara region, with Rio Tinto's share being $800m. Having received all necessary government approvals, the project is set to sustain production from the Hope Downs joint venture (JV), in which Rio Tinto and Hancock Prospecting are equal partners. The Hope Downs 2 project will mine the Hope Downs 2 and Bedded Hilltop deposits, with two new above-water-table iron ore pits. These pits are expected to have a combined annual production capacity of 31 million tonnes (mt), which will contribute to the long-term output of the joint venture. Rio Tinto iron ore chief executive Simon Trott said: '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 development will include new non-process infrastructure precincts, railway crossings, haul roads, and the realignment of a 6km section of the Great Northern Highway. The ore from the new sites will be processed at Hope Downs 1, with the first ore and associated infrastructure expected to be operational by 2027. The construction phase is expected to create more than 950 jobs, and once operational, the Hope Downs 2 project is anticipated to sustain approximately 1,000 full-time equivalent positions. Hope Downs 2 is part of a series of replacement projects that underline Rio Tinto's ongoing commitment to the Pilbara region. With a combined capacity of 130mtpa, these projects are integral to the company's strategy in the region. Over the next three years, Rio Tinto plans to invest more than $13bn in new mines, plant, and equipment. The company aims to achieve and maintain a mid-term system capacity of between 345mtpa and 360mtpa from its Pilbara iron ore operations. Additionally, a pre-feasibility study is in progress for the Rhodes Ridge project, considered Pilbara's most significant undeveloped iron ore deposit. In a separate development, Rio Tinto has agreed to pay £103.39m ($138.75m) to settle a US lawsuit alleging investor fraud related to its Oyu Tolgoi mine expansion in Mongolia. This preliminary settlement, which awaits judicial approval, was filed with the US District Court in Manhattan and represents Turquoise Hill Resources shareholders affected between July 2018 and July 2019 when Rio Tinto held a majority stake. "Rio Tinto and Hancock commit $1.6bn for Australia's Hope Downs 2 project" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Business Insider
9 hours ago
- Business Insider
Rio Tinto, Hancock Prospecting to invest $1.6B to develop Hope Downs 2 project
The company states: ' Rio Tinto (RIO) and Hancock Prospecting will invest $1.61B to develop the Hope Downs 2 iron ore project in Western Australia's Pilbara region. The Hope Downs 2 project, to mine Rio Tinto and Hancock Prospecting's Hope Downs 2 and Bedded Hilltop deposits, has now received all necessary State and Federal Government approvals. The two new above-water-table iron ore pits will have a combined total annual production capacity of 31 million tonnes and will sustain production from the Hope Downs Joint Venture into the future. Rio Tinto has engaged with the Nyiyaparli, Banjima and the Ngarlawangga Peoples, along with relevant government stakeholders, to ensure the responsible management of heritage and the environment in development of the project. The project includes new non-process infrastructure precincts, railway crossings and haul roads, as well as realigning a 6-kilometre section of the Great Northern Highway. Ore mined at the two sites will be transported to Hope Downs 1 for processing, with first ore from the deposits and associated infrastructure scheduled for 2027.' Confident Investing Starts Here:
Forbes
10 hours ago
- Forbes
Rinehart Ignores Falling Price To Invest $800 Million In A New Mine
Australia's richest person, iron ore billionaire, Gina Rinehart, has dismissed investor concern about the falling price of the steel making material by signing up for her half-share in a new $1.6 billion mine. Iron ore billionaire Gina Rinehart.(Photo by) With long-term corporate partner, the mining giant Rio Tinto, Rinehart will develop the Hope Downs No.2 and Bedded Hilltop deposits in the Pilbara region of Western Australia. The new pits will produce 31 million tons of high-grade iron ore a year from 2027. Rinehart's $800 million share of the capital cost will be provided by profits from her existing iron ore operations which last year contributed the lion's share of the $3.6 billion profit made by the family company she controls, Hancock Prospecting. Named after her father, the late Lang Hancock, the company helped pioneer iron ore mining in Australia which has grown into the country's most valuable single export thanks to China's demand for steel. The latest joint venture deal with Rio Tinto continues an association which dates back to the 1960s when Lang Hanock took his iron ore discoveries, made close to a family farming property in the Pilbara, to the big miner, securing a permanent royalty from future developments in their joint venture area. Rinhart has leveraged her income from the royalty into Australia's biggest privately-owned business which last financial year generated $9.4 billion in revenue thanks in part to a strong iron ore price which averaged more than $100/t, peaking at $140/t. Below $90/t And Falling The current financial year, which ends next week (June 30) will probably be so successful with the iron ore price falling from a peak of $112/t to last sales at $94/t and forecast to drop below $90/t as China's steel demand slips and new mines in Africa start production. The biggest new African mine is the Simandou development in Guinea in which Rio Tinto is a leading investor. Both Rinehart and Rio Tinto are confident that their new Australian project will be competitive with African mines on cost and quality, while holding a transport advantage because sailing time for a bulk cargo carrier is three weeks longer from West Africa then from Western Australia. Rio Tinto's Parker Point export loading facility in Western Australia. Photo by Aaron Bunch/Getty ... More Images) Rio Tinto said earlier today that all government approvals had been received for the Hope Downs No.2 project which is the latest in a series of relatively small new mines designed to maintain the company's annual Pilbara production at between 345m/t and 360m/t a year. Earlier this month, Rio Tinto opened the 25 million ton a year Western Range mine and approved the development of the Brockman Syncline No.1 mine. Chief executive of Rio Tinto's iron ore business Simon Trott said that over the next three years it was planned to invest more than $13 billion in new mines and mining equipment. After a period of small mine developments Rio Tinto is planning to develop the big Rhodes Ridge mine with Rinehart into a 40 million ton a year project. The current portfolio of mines and those planned will ensure that Rinehart's Hancock Iron Ore business will remain one of the world's leading suppliers of to the global steel industry.
