Global giant Rio Tinto has approved a $110 million prefeasibility study for the development of the Rhodes Ridge project, considered one of the world’s best undeveloped iron ore deposits.
Rio is weighing up an initial 40-million-tonne-per-annum operation, with first ore expected by the end of the decade.
Located in the East Pilbara in Western Australia, Rhodes Ridge falls under an old agreement from 1972 between Rio and Wright Prospecting. Both parties agreed to modernise the joint venture, providing a pathway for the development of Rhodes Ridge.
Rhodes Ridge contains an impressive 6.8 billion tonnes of mineral resources at an average grade of 61.6 per cent iron, including 5.3 billion tonnes at 62.2 per cent iron and 0.6 billion tonnes at 63.9 per cent iron.
Rio Tinto is planning to spend more than $400 million on exploration over five years from 2024 to 2028 as part of the ongoing study phases.
Study work to date indicates a staged development with an initial hub likely to be located in the northern part of the project, adjacent to existing rail infrastructure. The project will also make use of Rio’s existing port and power infrastructure, including the planned instalment of renewable power assets in the Pilbara.
“The size and quality of the resource base at Rhodes Ridge has the potential to underpin our iron ore business in the Pilbara for decades to come,” Rio iron ore chief executive Simon Trott said.
“Longer term, the resource could support a world-class mining hub with a potential capacity of more than 100 million tonnes of high-quality iron ore a year.
“We are committed to working closely with the Traditional Owners, the Nyiyaparli and Ngarlawangga People, as we progress this project.”
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