REG - Rio Tinto - Investment of $1.6b to develop Hope Downs 2

Rio TintoAnnouncement

Tue 07:00

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RNS Number : 0877O  Rio Tinto PLC  24 June 2025

 

Notice to ASX/LSE

 

Rio Tinto and Hancock Prospecting to invest $1.6 billion to develop the Hope
Downs 2 project in Western Australia's Pilbara

24 June 2025

 

Rio Tinto and Hancock Prospecting will invest $1.6(1) billion (Rio Tinto share
$0.8 billion) to develop the Hope Downs 2 iron ore project in Western
Australia's Pilbara region.

 

The Hope Downs 2 project, to mine Rio Tinto and Hancock Prospecting's Hope
Downs 2 and Bedded Hilltop deposits, has now received all necessary State and
Federal Government approvals.

 

The two new above-water-table iron ore pits will have a combined total annual
production capacity of 31 million tonnes and will sustain production from the
Hope Downs Joint Venture into the future.

 

Rio Tinto Iron Ore Chief Executive Simon Trott said: "Approval of Hope Downs 2
is a key milestone for Rio Tinto, as we invest in the next generation of iron
ore mines in the Pilbara.

 

"These projects are part of our strategy to continue investing in Australian
iron ore and to sustain Pilbara production for decades to come, supporting
jobs, local businesses and the state and national economies.

 

"The Pilbara has been critical to global steel supply for more than 60 years,
and we are committed to ensuring it remains so well into the future."

 

Rio Tinto has engaged with the Nyiyaparli, Banjima and the Ngarlawangga
Peoples, along with relevant government stakeholders, to ensure the
responsible management of heritage and the environment in development of the
project.

 

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

 

Ore mined at the two sites will be transported to Hope Downs 1 for processing,
with first ore from the deposits and associated infrastructure scheduled for
2027.

 

More than 950 jobs will be created during construction and, once operational,
the Hope Downs 2 project will help sustain a workforce of about 1000 full time
equivalent roles at Greater Hope Downs.

 

Hope Downs 2 is part of Rio Tinto's tranche of replacement projects that
underpin the company's ongoing commitment to the Pilbara, and which will have
combined total capacity of about 130Mtpa(2).

 

During the next three years (2025-2027), Rio Tinto expects to invest more than
$13 billion on new mines, plant and equipment.

 

The company has a clear pathway to achieve and sustain mid-term system
capacity of 345 to 360Mtpa from its Pilbara iron ore business, with a
pre-feasibility study also underway on the Rhodes Ridge project, the Pilbara's
best undeveloped iron ore deposit.

 

 

 

 

 

Additional information

 

Rio Tinto and Hancock Prospecting are equal partners in the Hope Downs Joint
Venture.

 

The Joint Venture was originally established in 2006, with Rio Tinto and
Hancock Prospecting's shared history extending back to the early 1960's.

 

Hope Downs 1 started production in 2007, followed by Hope Downs 4, with first
ore in 2013.

 

 

Footnotes

 

(1) All currency figures are in US dollars and on a 100 per cent basis,
unless otherwise specified. The capital for the project is already included in
the Group's replacement capital guidance.

 

(2) Subject to timing of full capacity. The replacement projects include
Western Range which, as previously announced
(https://www.riotinto.com/en/news/releases/2025/rio-tinto-and-baowu-open-western-range-iron-ore-mine-in-the-pilbara-with-yinhawangka-traditional-owners)
, was opened on 6 June 2025, Brockman Syncline 1, as announced
(https://www.riotinto.com/en/news/releases/2025/rio-tinto-to-invest-1_8-billion-to-develop-brockman-mine-extension-in-western-australias-pilbara)
on 6 March 2025, Hope Downs 2, West Angelas and Greater Nammuldi.

 

 

 

Contacts

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

 

 

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 Weiwei Hu

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 Rio Tinto plc           Rio Tinto Limited

 
 

 6 St James's Square     Level 43, 120 Collins Street

 London SW1Y 4AD         Melbourne 3000

 United Kingdom          Australia

 T +44 20 7781 2000      T +61 3 9283 3333

 Registered in England   Registered in Australia

 No. 719885              ABN 96 004 458 404

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

 

 

riotinto.com

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