Rio Tinto To Develop $1.6B Iron Ore Mine With Gina Rinehart’s Hancock Prospecting In Western Australia

Rio Tinto Inc. (RIO) said on Tuesday it will jointly develop a $1.6 billion iron ore project with Gina Rinehart’s Hancock Prospecting in Western Australia’s Pilbara region.

The Hope Downs 2 project will combine Rio Tinto and Hancock Prospecting’s Hope Downs 2 and Bedded Hilltop deposits, respectively. The project, which has received all the necessary regulatory permits, will have a combined total annual production capacity of 31 million tonnes.

“These projects are part of our strategy to continue investing in Australian iron ore and to sustain Pilbara production for decades to come,” said Rio Tinto’s iron ore chief, Simon Trott.

The project includes new non-process infrastructure precincts, railway crossings, and haul roads, as well as the realignment of a 6-kilometre section of the Great Northern Highway, the company said.

Rio Tinto, whose shares have fallen 3% this year, expects to invest more than $13 billion in new mines, plants, and equipment between 2025 and 2027. The company is rapidly expanding its operations in the Pilbara region to ensure that its export quantity remains constant. According to consultancy firm GMK, the region contributed about half of the world’s seaborne iron.

According to a report by S&P Global, iron ore shipments from Australia will rise from an estimated 905 million metric tons (MMt) in 2025 to 917 MMt by 2029. However, S&P Global analysts believe that the rise will be short-lived, with shipments projected to drop back to 905 MMt by 2035 due to mine depletion and declining ore grades.

Retail sentiment about Rio Tinto on Stocktwits was ‘extremely bullish’ on Monday, while retail chatter was ‘high.’

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