Rio Tinto and Gina Rinehart’s Hancock Prospecting will pour $1.6 billion into a major new iron ore development in Western Australia’s Pilbara, after the project received the green light from both levels of government.
The Hope Downs 2 project will charge ahead with equal support from the two mining giants, with the State and Federal Government granting all necessary approvals for its operation.
Located 1200 kms north of Perth, the project will tap into the Hope Downs 2 and Bedded Hilltop deposits, creating open pits with a combined annual output of 31 million tonnes of iron ore.
Ore from the new sites will be trucked to the existing Hope Downs 1 operations for processing, with first production expected in 2027.
Construction is set to generate more than 950 jobs. Once operational, the site will help support a 1000-strong workforce across the broader Hope Downs precinct.
“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,” Rio Tinto iron ore chief executive Simon Trott said.
“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 Pilbara has been critical to global steel supply for more than 60 years, and we are committed to ensuring it remains so well into the future.”
Hope Downs 2 joins a suite of replacement projects that will collectively add around 130 million tonnes of capacity per year.
The development will also involve new haul roads, rail crossings, and infrastructure precincts, along with a 6-kilometre realignment of the Great Northern Highway.
The joint venture between Rio Tinto and Hancock Prospecting began in 2006.
