Rio Tinto rooted in the Pilbara
Mining giant Rio Tinto (ASX: RIO) has been actively expanding its West Angelas iron ore operations in the Pilbara region of WA for more than 10 years.
The company is continuing this momentum after receiving approval for a $579m expansion project from the WA Environmental Protection Authority (EPA) back in 2019.
Of course, that approval was subject to conditions including the protection of national park water resources and threatened ghost bats.
The initiative of the expansion was aimed at increasing the mine’s production capacity from 29mtpa to 35mtpa and extend the mine’s life by about 13 years.
The mine was built 20 years ago and was considered ‘a new breed’ of iron ore mine at the time.
The expansion involved developing new pits, particularly Deposits C and D and enhancing existing infrastructure to support increased production.
Contracts were awarded to various firms for engineering, procurement and construction management, with significant fabrication and modularisation work carried out to facilitate the expansion.
Operations cut
In recent developments, Rio Tinto has been adjusting its operations at West Angelas. In late 2024, the company reduced its workforce at the mine by about 40 operational roles, a move that was part of an effort to align the workforce with ongoing operational requirements.
Rio Tinto hadn’t confirmed the number of exact job losses, but the company is still making large profits shipping its product overseas, with cutbacks to the workforce considered rare.
Blended family
The company is leveraging its long-standing partnerships to achieve record results.
Rio Tinto Iron Ore chief executive Simon Trott says China has been a critical partner for the company and for Australia’s mining industry for more than five decades.
“China’s strong demand for high-quality minerals such as iron ore has generated substantial opportunities for investment and trade between the two countries,” he said.
In 1987, Rio Tinto partnered with China for the country’s first ever investment in a foreign mining project and its largest ever foreign investment at the time, by forming the Channar joint venture in a move to address the declining iron content from aging WA mines and meet market demands for higher-grade ore.
In July 2024, the partnership saw Rio Tinto celebrate the shipment of 4bt of iron ore from the Pilbara to China Baowu Steel Group – the world’s top steel producer. About 250mtpa of iron ore is shipped to China alone, making the country Rio Tinto’s largest customer.
Rhodes Ridge
In December 2023, Rio Tinto approved a $110m (USD$77m) pre-feasibility study (PFS) to progress development of the Rhodes Ridge project, an undeveloped iron ore deposit in the East Pilbara.
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.
Last year, Rio Tinto (50%) and Wright Prospecting (50%) agreed to modernise the joint venture covering the Rhodes Ridge project, located 40km north-west of Newman.
Rhodes Ridge contains 6.8bt of mineral resources at an average grade of 61.6% iron, including 5.3bt at 62.2% iron and 0.6bt at 63.9% iron.
Mr Trott says the size and quality of the resource base at Rhodes Ridge has the potential to underpin Rio Tinto’s iron ore business in the Pilbara for decades to come.
“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,” he said.
Exciting times lie ahead for Rio Tinto this year.
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