Rio Tinto's $1.8 Billion Iron Ore Expansion Ramps Up In Australia: Details

Rio Tinto Plc RIO disclosed that it is investing $1.8 billion to develop the Brockman Syncline 1 (BS1) mine in Western Australia’s West Pilbara.

With this, the company is aiming to extend the region’s mine life and maintaining iron ore production.

BS1 is part of a series of replacement projects, collectively aimed at achieving a total annual capacity of around 130Mtpa, reinforcing Rio Tinto’s long-term commitment to the Pilbara region.

It represents a major investment in the Brockman region, which includes Brockman 4 and Greater Nammuldi.

The project has secured all required State and Federal approvals and was developed in collaboration with the Puutu Kunti Kurrama and Pinikura (PKKP) and Muntulgura Guruma Traditional Owners.

Rio Tinto Iron Ore Chief Executive Simon Trott said, “Brockman 4 produced 43 million tonnes of iron ore in 2024. Securing this project extends the life of the Brockman hub.”

“Rio Tinto has been mining iron ore in the Pilbara for almost six decades and our tranche of new mines will ensure we can continue to supply the globe’s ongoing need for iron ore, for decades to come.”

The project will be capable of processing up to 34 million tonnes per annum (Mtpa) of iron ore, utilizing existing facilities.

The first ore is now expected in 2027, ahead of the previously anticipated 2028 timeline.

The construction for the project is set to begin this year and will involve building a new primary crusher, an overland conveyor, a Non-Process Infrastructure precinct, and a temporary camp for construction workers.

The project will create around 1,000 jobs during construction, with a workforce of approximately 600 once operational.

In a separate release, Rio Tinto revealed the completion of the buyout of Arcadium Lithium plc ALTM for $6.7 billion.

The transaction will integrate Arcadium’s lithium operations into Rio Tinto’s portfolio. Arcadium boasts a production capacity of 75,000 tonnes of lithium carbonate equivalent annually, with plans to double by 2028.

Investors can gain exposure to RIO via VanEck Steel ETF SLX and NEOS ETF Trust Mast Global Battery Recycling & Production ETF EV.

Price Action: RIO shares are up 0.33% at $63.96 premarket at the last check Thursday.

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