Rio Tinto approves $110m PFS for Rhodes Ridge

Rio Tinto (ASX:RIO) has approved a $110m pre-feasibility (PFS) study to progress development of one of the world’s best undeveloped iron ore deposits — the Rhodes Ridge project.

The start of the PFS follows the completion of an order of magnitude study that considered development of an operation with initial capacity of up to 40mtpa.

The PFS is expected to be completed by the end of 2025 and will be followed by a feasibility study with first ore from the initial development expected by the end of this decade.

Over the five-year period from 2024 to 2028, Rio is planning to spend more than $400m on exploration as part of the ongoing study phases. Study work to date has indicated a staged development with an initial hub likely to be in the northern part of the project.

Rhodes Ridge contains 6.8bt of mineral resources at an average grade of 61.6% iron, including 5.3bt at 62.2% iron and 600mt at 63.9% iron.

Rio Tinto iron ore chief executive Simon Trott commented on the development.

“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.

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

“We are committed to working closely with the Traditional Owners, the Nyiyaparli and Ngarlawangga People, as we progress this project.”

Last year, Rio Tinto and Wright Prospecting agreed to modernise the joint venture covering Rhodes Ridge. The joint venture split is 50:50.