Rio Tinto and Hancock Prospecting will invest US $1.6 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. 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.

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”.

Rio Tinto and Hancock Prospecting are equal partners in the Hope Downs Joint Venture, which was originally established in 2006. Rio Tinto and Hancock Prospecting’s shared history extends back to the early 1960s. Hope Downs 1 started production in 2007, followed by Hope Downs 4, with first ore in 2013.

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 130 million tonnes per annum.