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【Ferro-alloys.com】: Rio Tinto and Hancock Prospecting will invest $1.61-billion to develop the Hope Downs 2 iron-ore project in the Pilbara, aiming to sustain long-term output from their joint operations in the region.

The project will target the Hope Downs 2 and Bedded Hilltop deposits and includes the development of two above-water-table pits with a combined capacity of 31-million tonnes a year.

Rio Tinto, which holds a 50% interest, will contribute $800-million. The joint venture has secured all required state and Federal approvals, the companies said on Tuesday.

“Approval of Hope Downs 2 is a key milestone for Rio Tinto, as we invest in the next generation of iron-ore mines in the Pilbara,” Rio Tinto Iron Ore CE Simon Trott said in a statement.

“These projects are part of our strategy to continue investing in Australian iron-ore and to sustain Pilbara production for decades to come.”

Construction is expected to create more than 950 jobs, and the project will support about 1 000 full-time equivalent roles once operational. First ore is scheduled for 2027, with mined material to be processed at the existing Hope Downs 1 facility.

Infrastructure works include new precincts, haul roads, rail crossings, and the realignment of a 6-km section of the Great Northern Highway.

Rio Tinto said it had worked with the Nyiyaparli, Banjima and Ngarlawangga Peoples and relevant authorities to manage heritage and environmental concerns during project planning.

Hope Downs 2 forms part of Rio Tinto’s replacement project pipeline, which the miner says will underpin a system capacity of 345-million to 360-million tonnes a year. The company plans to invest over $13-billion in its Pilbara iron-ore business between 2025 and 2027.

A prefeasibility study is also under way at the undeveloped Rhodes Ridge deposit.

The Hope Downs venture was established in 2006, with Rio Tinto and Hancock Prospecting having a shared history in the Pilbara dating back to the early 1960s. The first mine, Hope Downs 1, began production in 2007, followed by Hope Downs 4 in 2013.

• [Editor:Alakay]