$2.4b boost for Hope Downs 2

Hancock Prospecting and Rio Tinto (ASX: RIO) will invest $1.2b each to develop the Hope Downs 2 iron ore project in the Pilbara region of WA.

The project, which will mine the companies Hope Downs 2 and Bedded Hilltop deposits, has received all necessary approvals to advance operations.

Both of the iron ore pits, which sit above the water table, will have a combined annual production capacity of 31mt and will sustain production from the Hope Downs joint venture into the future.

Rio Tinto iron ore chief executive Simon Trott says the approval is a key milestone for the company as it invests in the next generation of iron ore mine in the Pilbara.

“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,” he said.

“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.”

The company has engaged with traditional Owners and relevant government stakeholders to ensure the responsible management of heritage and the environment throughout the project’s development.

Hope Downs 2 includes new non-process infrastructure precincts, railway crossing, haul roads and a 6km section of the Great Northern Highway.

The development of the site will create more than 950 jobs and, once operational, the project will sustain a workforce of more than 1,000 full-time employees.