PERTH (miningweekly.com) – Diversified major Rio Tinto and its Pilbara joint venture (JV) partners Mitsui and Nippon Steel & Sumitomo Metal, have approved a $1.55-billion investment to sustain production capacity at two iron-ore projects that form part of the Robe River JV, in Western Australia.
Rio’s 53% share of expenditure will amount to $820-million.
The miner on Monday reported that the JV partners will invest a combined $967-million, with Rio’s share $513-million, to develop the Mesa B, C and H deposits at Robe Valley, and $579-million, with Rio contributing $307-million, in developing Deposits C and D at the existing West Angelas operation.
“The development at West Angelas will help sustain production of the Pilbara Blend, the industry’s benchmark premium iron-ore product, while the additional Robe Valley deposits will enable us to continue to provide a highly valued product to our long-term customers across Asia,” said Rio’s iron-ore CEO Chris Salisbury.
“The approval of these two projects highlights the strong pipeline of development options within our portfolio as we remain focused on our value-over-volume strategy.”
Subject to government and environmental approvals, construction of both projects is expected to start next year with an estimated 1 200 jobs created during this phase.
First ore is currently anticipated from 2021. These investments will also provide significant opportunities for local businesses as part of Rio's commitment to local procurement and supporting Western Australian businesses.
Once operational, both projects will feature the latest technology with 34 existing haul trucks to be retrofitted with autonomous haulage system technology.
Rio's funding commitment for both projects forms part of the company's existing replacement capital guidance of around $2.7-billion from 2018 to 2020.