UK-Australian mining giant Rio Tinto and Australia’s Hancock Prospecting have committed $1.6 billion to expand the Hope Downs iron ore project in Western Australia (WA). The investment aims to sustain Rio Tinto’s production levels and ore grades as older mines reach depletion.
On 24 June, Rio Tinto announced plans to develop two new pits at Hope Downs, boosting annual capacity by 31 million metric tons. The project has received approvals from both federal and WA state governments. This expansion is part of Rio Tinto’s broader strategy to offset declining output from aging mines. The company recently began operations at the 25 million t/yr Western Range mine and is advancing the 40 million t/yr Rhodes Ridge and 34 million t/yr Brockman expansions, targeting full production by 2030.
Collectively, these projects will add 130 million t/yr of capacity, helping maintain Rio Tinto’s WA output between 345 million and 360 million t/yr in the medium term, up from current levels of 325 million-335 million t/yr. The company has also adjusted its Pilbara Blend Fines grade to 60.8% Fe, down from 61.6% Fe, reflecting changing ore quality.
Argus reported the 61% Fe iron ore price at $90.05/t on 23 June, below the 62% Fe benchmark of $92.65/t.
