Name of the Project
Gudai-Darri (formerly Koodaideri) iron-ore mine.

Location
Pilbara, Western Australia.

Project Owner/s
Rio Tinto.

Project Description
Gudai-Darri will be Rio Tinto’s most technologically advanced mine.

The investment is underpinned by an orebody – more than 20 km long and 3 km wide – of high-quality Brockman ore. 

The operation has been designed to use an increased level of automation and digitisation, helping to deliver a safer and more productive mine, which is expected to be Rio Tinto’s lowest-cost contributor to its industry-benchmark Pilbara Blend product.

Using digital assets, advanced data analytics and automation, Rio Tinto expects to significantly enhance the operation and maintenance of this new mine.

Phase 1 of the project will help sustain Rio Tinto’s existing production capacity by replacing depletion elsewhere in the system. The project will increase the higher-value lump component of the Pilbara Blend, subject to market conditions, from the current average of about 35% to about 38%. This first phase of Gudai-Darri will have a 43-million-tonne-a-year capacity, underpinning production of the Pilbara Blend. 

The project incorporates a processing plant and infrastructure, including a 166 km rail line connecting the mine to Rio Tinto’s existing network. Mine infrastructure, an airport, mine support facilities and accommodation for employees will also be built.

The proposed Phase 2 expansion could increase capacity from the Gudai-Darri production hub to 70-million tonnes a year and beyond.

Potential Job Creation
About 600 permanent jobs are expected to be created once the mine is operational.

To date, the project has awarded local businesses – including Pilbara, Pilbara Aboriginal and Western Australia-based businesses – contracts valued at more than A$1.1-billion, supporting about 2 000 jobs in the construction phase.

Net Present Value/Internal Rate of Return
The project is expected to deliver an internal rate of return of 20% and capital intensity of about $60/t/y.

Capital Expenditure
The project entails a $2.6-billion investment.

Planned Start/End Date
The project was approved in November 2018. Rio Tinto expects production to ramp up in 2022.

Latest Developments
Key construction activities are on schedule.

The new airport has opened, which is expected to handle more than 600 workers a day at peak operating times. The airport will help strengthen site safety by minimising mine employees’ exposure to driving and vehicle transport while reducing the hours they are required to travel from an alternate airport, consequently reducing fatigue. The airport will also provide a safer landing option for the Royal Flying Doctor Service. 

Rio Tinto has also built Western Australia’s biggest steel beam bridge to transport Great Northern Highway traffic over Gudai-Darri’s train line. Rail formation works are on schedule and track-laying has begun. 

Rio Tinto has also completed the studies for the proposed 34 MW solar plant at Gudai-Darri and will start construction on the project later in 2021. This will comprise about 100 000 solar panels consisting of photovoltaic cells to convert sunlight into electricity. On average, the solar plant is expected to supply all Gudai-Darri’s electricity demand during peak solar power generation times and about 65% of the mine’s average electricity demand. With a new lithium-ion battery-energy storage system, the solar plant could reduce Rio Tinto’s carbon dioxide emissions by an estimated 90 000 t/y, compared with those of conventional gas-powered generation. 

Rio Tinto has multiple project scopes under study for Gudai-Darri Phase 2 following board approval for a $44 million prefeasibility study. 

Key Contracts, Suppliers and Consultants
NRW Holdings (bulk earthworks and prestrip contract).

Contact Details for Project Information
Rio Tinto, email media.enquiries@riotinto.com.