Rio Tinto announced it entered into a joint venture with China Baowu Steel Group Co. Ltd to develop Western Australia’s Western Range iron ore project, investing $2 billion to develop the mine.
In a statement, Rio Tinto said the 25 tonnes of iron ore that the Western Range can produce annually would aid Rio Tinto’s existing Paraburdoo mining hub to maintain Pilbara Blend production. A primary crusher will be built as part of the project, and a conveyor system stretching 18 kilometres will connect it to the current Paraburdoo processing plant.
Rio Tinto Iron Ore Chief Executive Simon Trott said the development of Western Range marks the beginning of the next significant investment in Rio Tinto’s iron ore business, and it will support the future production of the Pilbara Blend, the market benchmark.
“At the same time, Rio Tinto and Baowu continue to work together on low-carbon steelmaking research, exploring new methods to reduce carbon emissions and improve environmental performance across the steel value chain,” Trott stated.
Additionally, Rio Tinto and Baowu have agreed to sign a contract to sell iron ore at market rates for up to 126.5 million tonnes over the course of about 13 years. According to Rio Tinto, the amount represents Baowu’s 46 per cent share of the 275 tonnes of production that the Joint Venture anticipates from the Western Range.
Rio Tinto has a long history of collaborating and investing with clients to develop new mines in the Pilbara. The Pilbara joint venture between Rio Tinto and Baowu was established in 2002 and was intended to develop the Eastern Range deposits in the Hamersley Ranges and Western Range, subject to a 200 million tonnes production cap.
“The signing of the joint venture agreement for the Western Range Project is a significant event in the history of cooperation between Baowu and Rio Tinto. We fully appreciate the persistent efforts of both teams in accomplishing the important achievement. The Bao-HI joint venture has been successfully operating for more than 20 years, leading us to a win-win results, and reaping friendship and trust,” Baowu Resources Chairman Shi Bing said.
To protect significant cultural and heritage values in the region. Rio Tinto stated that it had collaborated closely with the Yinhawangka People, the Traditional Owners on whose land Western Range is located, to co-design a Social and Cultural Heritage Management Plan for the project.
The plan, which was established in conjunction with the Yinhawangka Aboriginal Corporation and announced earlier this year, outlines procedures for group decision-making on environmental issues and mine planning.
“We have worked in partnership with the Yinhawangka People to jointly develop a Social, Cultural, and Heritage Management Plan as part of our commitment to protecting significant cultural and environmental values at Western Range,” Trott said.
Construction is expected to commence in early 2023, with the first production forecast in 2025. The mine will require approximately 800 ongoing operational roles, which are expected to be filled by existing workers transitioning from other sites in the Paraburdoo mining hub during the construction phase.
