Name of the Project
Koodaideri iron-ore mine.

Location
Pilbara, Western Australia.

Project Owner/s
Rio Tinto.

Project Description
Koodaideri 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. Mine infrastructure, an airport, mine support facilities and accommodation for employees will be built.

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.

Koodaideri Phase 1 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%.

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

Once complete, the mine will have a capacity of 43-million tonnes a year, underpinning production of the Pilbara Blend.

Potential Job Creation
Throughout the construction period, Rio Tinto expects to employ more than 2 000 people, with 600 permanent roles created once the mine is operational.

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
Construction is scheduled to begin in 2019, with first production expected in 2021.

Latest Developments
Rio Tinto has awarded a A$95-million prestrip contract to NRW Holdings for its Koodaideri mine.

The scope of the contract will include the development of initial mining prestrip and earthworks infrastructure to allow for the start of mining operations.

Work on the contract will start in November this year and will last for about 78 weeks. At peak, about 150 staff will be required.

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

On Budget and on Time?
Too early to state.

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