Rio Tinto will invest US$1.8 billion to expand its Brockman iron ore mining complex, as it seeks to shore up its supply in the Pilbara region.
A new mining project, called Brockman Syncline 1 (BS1), will be able to process up to 34 million tonnes of iron ore each year. Ore production is planned to begin in 2027.
“Securing this project extends the life of the Brockman hub,” said Rio Tinto Iron Ore chief executive Simon Trott. “This is good for our business, good for Western Australia and good for the Australian economy.”
“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,” Trott said.
According to Rio Tinto, BS1 is expected to create around 1,000 jobs during construction, and will include a workforce of 600 once operational. The project has received all necessary regulatory approvals, the company said.
The company plans to develop a number of replacement projects in the Pilbara, which would have a total annual capacity of 130 million tonnes. Trott has said Rio Tinto hopes to build a new mine each year until the end of the decade to maintain sufficient supply levels, particularly as older mines’ iron ore diminishes.
Rio Tinto saw its consolidated sales revenue and underlying EBITDA fall slightly in 2024, due to low iron ore prices.
It also finalised its acquisition of Arcadium Lithium today for US$6.7 billion, which will be renamed Rio Tinto Lithium. The new subsidiary hopes to expand its lithium mining operations in Argentina and Australia, and add new processing facilities in the United States, United Kingdom, China, and Japan.
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