Rio Tinto and its joint venture partner Hancock Prospecting will invest $US1.6 billion to develop the Hope Downs 4 iron ore project and link it with existing rail, power and port infrastructure in the Pilbara.
Rio Tinto and its joint venture partner Hancock Prospecting will invest $US1.6 billion to develop the Hope Downs 4 iron ore project and link it with existing rail, power and port infrastructure in the Pilbara.
The new open-cut mine will have an annual capacity of 15 million tonnes of high-quality iron ore, with first production anticipated in 2013.
Rio Tinto will share the capital cost to develop the mine, estimated at $US1.2 billion, with Hancock subsidiary Hope Downs Iron Ore.
The project will include a permanent village for more than 600 personnel and construction is expected to start early next year.
"Commencing the Hope Downs 4 project highlights the prospectivity of Rio Tinto's excellent reserves portfolio, and our ability to offer customers a reliable long term source of high quality ore," said Rio Tinto Iron Ore chief executive Sam Walsh.
"This demonstrates the extensive high-grade resources Rio Tinto can bring on line to sustain our current output at 225 million tonnes a year - an equally important consideration as we seek to expand our Pilbara production rate to 330 million tonnes a year by 2015."
See company statement below:
Rio Tinto today announced an investment of US$1.6 billion to develop the Hope Downs 4 iron ore project in Western Australia and link with Rio Tinto's existing rail, power and port infrastructure in the Pilbara.
Rio Tinto and its joint venture participant, Hope Downs Iron Ore Pty Ltd, will proceed with the development of the mine at an estimated capital cost of US$1.2 billion (Rio Tinto share US$607 million), to be shared equally by the JV partners.
The new open-cut mine will have an annual capacity of 15 million tonnes of high-quality iron ore, with first production anticipated in 2013.
The project is in the south eastern Pilbara, 30 kilometres north of Newman, and will include permanent staff village for more than 600 personnel, mine dewatering, an open cut shovel and truck mining fleet and wet ore processing infrastructure. The project ore body has recoverable product Ore Reserves (at a Fe cut-off of 59.5 per cent) of:
- Proved Reserves of 73Mt @ 63.0% Fe
- Probable Reserves of 64Mt @ 63.2% Fe
Rio Tinto will also commit an additional US$425 million to fully cover the capital cost of the rail, rolling stock and power infrastructure owned by Rio Tinto required for this development. The 52-kilometre spur line connecting to the Lang Hancock Railway will link the mine to Rio Tinto's existing rail and port infrastructure.
Rio Tinto Iron Ore chief executive Sam Walsh said: "Commencing the Hope Downs 4 project highlights the prospectivity of Rio Tinto's excellent reserves portfolio, and our ability to offer customers a reliable long term source of high quality ore.
"This demonstrates the extensive high-grade resources Rio Tinto can bring on line to sustain our current output at 225 million tonnes a year - an equally important consideration as we seek to expand our Pilbara production rate to 330 million tonnes a year by 2015."
Construction is anticipated to commence in early 2011, subject to obtaining necessary regulatory and other approvals.
In addition to the ore reserves reported above, Hope Downs 4 also has significant reported high phosphorus Brockman DSO Mineral Resources (exclusive of Reserves) as tabulated below by classification and category (as-at December 31st 2009).
