Rio progresses Rhodes Ridge

Rio Tinto has highlighted the importance of its giant Rhodes Ridge project in the Pilbara by approving a pre-feasibility study and outlining plans to spend $400 million on exploration.

The miner has approved a $US77 million (A$110 million) PFS to progress development of Rhodes Ridge, which is likely to become its largest mining operation in the Pilbara over the next 10 to 20 years.

The PFS follows completion of an Order of Magnitude study that considered development of a mine with initial capacity of up to 40 million tonnes annually.

The PFS is expected to be completed by the end of 2025 and will be followed by a feasibility study.

First ore from the initial development is expected by the end of this decade.

Rio’s Iron Ore chief executive Simon Trott has talked up the significance of Rhodes Ridge.

“The size and quality of the resource base at Rhodes Ridge has the potential to underpin our iron ore business in the Pilbara for decades to come,” he said today.

“Longer term, the resource could support a world-class mining hub with a potential capacity of more than 100 million tonnes of high-quality iron ore a year.”

Jointly owned by Rio and family company Wright Prospecting, Rhodes Ridge has multiple attributes.

It is located 40 kilometres north-west of Newman and will be able to utilise Rio’s existing rail, port and power infrastructure, substantially reducing the likely development cost.

The deposit contains 6.8 billion tonnes of Mineral Resources at an average grade of 61.6% Fe, including 5.3 billion tonnes at 62.2% Fe and 0.6 billion tonnes at 63.9% Fe.

Iron ore with an Fe (iron) content above 62 per cent is becoming increasingly rare and means Rhodes Ridge output should attract a premium price.

Rio said today it plans to spend more than A$400 million on exploration over five years from 2024 to 2028 as part of the ongoing study phases.

Study work to date indicates a staged development with an initial hub likely to be located in the northern part of the project, adjacent to existing rail infrastructure.

Today’s update comes at a time when Rio is battling to gain approvals for its next tranche of ‘brownfields’ mine developments, which it needs in order to reach its medium-term production target of 345mt to 360mtpa.

These projects are West Angelas, Hope Downs 1, Greater Nammuldi and Brockman 4.