Rio Tinto and its joint venture partners have given the green light to invest $2.1 billion across two iron ore projects that will employ 1,200 people in the Pilbara.
Rio Tinto and its joint venture partners have given the green light to invest $2.1 billion across two iron ore projects that will employ 1,200 people in the Pilbara.
The Robe River joint venture, which comprises Rio (53 per cent), along with Japanese companies Mitsui & Co (33 per cent) and Nippon Steel & Sumitomo Metal (14 per cent), has approved investment of $US967 million ($1.34 billion) at Robe Valley and $US579 million ($800 million) at the West Angelas operation.
Rio iron ore chief executive Chris Salisbury said the two projects would enable the company to sustain production of its Pilbara blend and Robe Valley lump and fines products.
“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,” he said.
Rio said the projects would generate about 1,200 jobs during the construction phase, with first ore expected in 2021.
The company said the mines would incorporate its latest technology, with 34 existing haul trucks to be retrofitted with autonomous technology.
Under the joint venture agreement, Rio will contribute $US513 million to the Robe Valley project and $US307 million to West Angelas.
The iron ore miner said the investment formed part of its $US2.7 billion replacement capital guidance from 2018 to 2020.
Premier Mark McGowan congratulated Rio on the investment.
"This is a big announcement for Western Australia and yet another sign that confidence is returning to the state's economy," Mr McGowan said.
"It's pleasing to see the state's economy recover and new jobs being created, but we acknowledge that there is plenty more to be done."
The news comes after BHP Billiton approved its $4.5 billion South Flank iron ore development in June, while Andrew Forrest-led Fortescue Metals Group made a decision to proceed with its $1.7 billion Eliwana mine in May.
Rio is expected to make a decision on the Koodaideri mine in coming months.
Shares in Rio were off 0.57 per cent at $78.30 each at 2pm AEDT.
* To see the newly-created listing of Major Projects in Western Australia, go to www.businessnews.com.au/index/project. The listing has been created by the research team at Business News and includes Ongoing, Likely and Possible projects across the transport, mining, oil & gas, construction and other sectors.
