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Rio Tinto PLC on Tuesday announced an investment of $1.6 billion to develop the Hope Downs 2 iron ore project in Western Australia’s Pilbara region. Half of that sum will be contributed by Rio Tinto. The investment is being made alongside Perth, Australia-based mining company Hancock Prospecting Pty Ltd, Rio Tinto added. 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 and Hancock Prospecting are equal partners at the project. A joint-venture between the duo had been established in 2006. Rio Tinto added that first ore from the deposits at Hope Downs 1 is 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,’ Rio Tinto said. Over the years 2025 to 2027, Rio Tinto expects to invest more than $13 billion on new mines, plant and equipment, the company said. It added that it has a clear pathway to achieve and sustain a mid-term system capacity of 345 to 360 million tonnes per year from its Pilbara iron ore business. Rio Tinto shares rose 1.0% to 4,228.50 pence each on Tuesday morning in London, giving it a market capitalisation of £71.72 billion. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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