REG - Rio Tinto - First ore delivered at Gudai-Darri iron ore mine

Rio TintoAnnouncement

15/06/2022 07:00

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RNS Number : 8928O  Rio Tinto PLC  15 June 2022

 15 June, 2022

 

First ore delivered at Gudai-Darri iron ore mine in the Pilbara

Rio Tinto has delivered first ore from the Gudai-Darri iron ore mine as the
company brings online its first greenfield mine in the Pilbara, Western
Australia, in more than a decade. Gudai-Darri will help underpin future
production of the company's flagship Pilbara Blend™ product.

 

The first autonomous AutoHaul™ trains loaded with ore from Gudai-Darri's
process plant have travelled the new 166-kilometre rail line that connects to
Rio Tinto's existing rail and port infrastructure. Production from the mine
will continue to ramp up through the remainder of this year and is expected to
reach full capacity during 2023.

 

Since ground was broken in April 2019, more than 14 million workhours have
resulted in the movement of over 20 million cubic metres of earth, batching
and placement of 35,000 cubic metres of concrete, and the installation of
10,000 tonnes of steel. The development of Gudai-Darri supported more than
3,000 jobs during the construction and design phase. The mine will support
around 600 ongoing permanent roles.

 

With an expected life of more than 40 years and an annual capacity of 43
million tonnes, Gudai-Darri will underpin future production of Pilbara
Blend™ product. A feasibilty study to support an expansion of this new hub
is also progressing.

 

The mine's commissioning and ramp-up is expected to increase Rio Tinto's iron
ore production volumes and improve product mix from the Pilbara in the second
half of this year. Full-year shipments guidance for 2022 remains at 320 to 335
million tonnes (100% basis) subject to risks around the ramp up of new mines,
weather and management of cultural heritage.

 

The capital cost for the mine is estimated to be $3.1 billion (A$4.3 billion).
As disclosed in February, the company's replacement projects in the Pilbara,
including Gudai-Darri, were subject to potential capital increases of
approximately 15% due to ongoing COVID-19 restrictions, including labour
access and supply chain quality issues. Group capital expenditure guidance for
2022 is unchanged at around $8 billion.

 

Rio Tinto Iron Ore Chief Executive Simon Trott said "The commissioning of
Gudai-Darri represents the successful delivery of our first greenfield mine in
over a decade, helping to support increased output of Pilbara Blend, our
flagship product. It sets a new standard for Rio Tinto mine developments
through its deployment of technology and innovation to enhance productivity
and improve safety.

 

"I'd like to acknowledge the support of the Traditional Owners, the Banjima
People, on whose country Gudai-Darri is situated. We have worked closely with
the Banjima People to progress this project and we look forward to continuing
to actively partner with them into the future."

 

Rio Tinto Chief Technical Officer Mark Davies said "The safe and successful
delivery of Gudai-Darri, in the midst of a global pandemic, is testament to
the resilience and hard work of thousands of Rio Tinto employees and
contractors, including a range of local Western Australian suppliers, as well
as Pilbara Aboriginal businesses.

 

"In building this new hub we have brought together the best of our
innovations, including autonomous trucks, trains and drills, as well as the
world's first autonomous water trucks, to make Gudai-Darri our most
technologically advanced iron ore mine.

 

"This suite of autonomous assets complements the planned deployment of other
leading-edge technologies including a robotic ore sampling laboratory, field
mobility devices for all personnel and a digital asset of the fixed plant,
which, together with data analytics, will make Gudai Darri safer and more
productive."

 

Helping support Rio Tinto's carbon emission reduction targets, Gudai-Darri
will be powered by a 34 megawatt solar farm that is expected to supply about a
third of the mine's average electricity demand once construction is complete
in August.

 

Together with a new lithium-ion battery energy storage system in Tom Price,
the solar plant is estimated to reduce annual carbon dioxide emissions by
about 90,000 tonnes compared to conventional gas powered generation,
equivalent to taking about 28,000 cars off the road.

 

 Contacts  Please direct all enquiries to media.enquiries@riotinto.com

 

 Media Relations, UK         Media Relations, Australia

 Illtud Harri                Jonathan Rose

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 Media Relations, Americas   Jesse Riseborough

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                             Investor Relations, Australia

 Investor Relations, UK      Amar Jambaa

 Menno Sanderse              M +61 472 865 948

 M: +44 7825 195 178

 David Ovington

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 Clare Peever

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 Rio Tinto plc               Rio Tinto Limited

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London SW1Y 4AD

United Kingdom             Melbourne 3000

 T +44 20 7781 2000          Australia

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This announcement is authorised for release to the market by Steve Allen, Rio
Tinto's Group Company Secretary.

 

riotinto.com

 

 

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