Iron Ore Project

Rio Tinto approves USD 1.6 billion Investment in Hope Down 4 Iron Ore Project

30.08.2010 | Deskman: Marcel Dröttboom

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Rio Tinto has approved a USD 1.6 billion investment in the Hope Down 4 Iron Ore Project. (Copyright © 2010 Rio Tinto)

Melbourne, Australia – Rio Tinto today announced an investment of USD 1.6 billion to develop the Hope Downs 4 iron ore project in Western Australia and link with Rio Tinto’s existing rail, power and port infrastructure in the Pilbara.

Rio Tinto and its joint venture participant, Hope Downs Iron Ore, will proceed with the development of the mine at an estimated capital cost of USD 1.2 billion (Rio Tinto share USD 607 million), to be shared equally by the joint venture partners. The new open-cut mine will have an annual capacity of 15 million tonnes of high-quality iron ore, with first production anticipated in 2013.

The project is in the south eastern Pilbara, 30 kilometres north of Newman, and will include a permanent staff village for more than 600 personnel, mine dewatering, an open cut shovel and truck mining fleet and wet ore processing infrastructure.

Rio Tinto will also commit an additional USD 425 million to fully cover the capital cost of the rail, rolling stock and power infrastructure owned by Rio Tinto required for this development. The 52-kilometre spur line connecting to the Lang Hancock Railway will link the mine to Rio Tinto’s existing rail and port infrastructure.

Construction is anticipated to commence in early 2011, subject to obtaining necessary regulatory and other approvals.

The project ore body has recoverable product Ore Reserves (at a Fe cut-off of 59.5 per cent) of:

• Proved Reserves of 73Mt @ 63.0% Fe

• Probable Reserves of 64Mt @ 63.2% Fe

In addition to the ore reserves reported above, Hope Downs 4 also has significant reported high phosphorus Brockman DSO Mineral Resources (exclusive of Reserves) as tabulated below by classification and category (as-at December 31st 2009).

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Comments by Sam Walsh, Chief Executive Rio Tinto Iron Ore

Comments by Sam Walsh, Chief Executive Rio Tinto Iron Ore

Rio Tinto Iron Ore chief executive Sam Walsh said: “Commencing the Hope Downs 4 project highlights the prospectivity of Rio Tinto’s excellent reserves portfolio, and our ability to offer customers a reliable long term source of high quality ore. This demonstrates the extensive high-grade resources Rio Tinto can bring on line to sustain our current output at 225 million tonnes a year – an equally important consideration as we seek to expand our Pilbara production rate to 330 million tonnes a year by 2015.”

Ergänzendes zum Thema

Reserves at Hope Down 4

Reserves at Hope Down 4

The project ore body has recoverable product Ore Reserves (at a Fe cut-off of 59.5 per cent) of:

• Proved Reserves of 73 million tonnes at 63.0 per cent Fe
• Probable Reserves of 64 million tonnes at 63.2 per cent Fe

In addition to the ore reserves reported above, Hope Downs 4 also has significant reported high phosphorus Brockman DSO Mineral Resources (exclusive of Reserves) as tabulated below by classification and category (as at December 31st 2009).

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