When Mitsui & Co. purchased a 40 per cent stake in the Rhodes Ridge project in the Pilbara, it brought one of the world’s largest untapped iron ore deposits back into the spotlight.
The mine, which contains 6.8 billion tonnes of mineral resources, is set to produce 40 million tonnes per annum (Mtpa) of iron ore when operations commence, with the potential to scale up to 100Mtpa in the future.
By comparison, BHP’s South Flank operation, which recently reached full production capacity after achieving first ore in May 2021, is producing 80Mtpa of iron ore. Gudai-Darri, Rio’s other new iron ore mine in the Pilbara, has a nameplate production capacity of 43Mtpa.
Rhodes Ridge forms part of Rio’s strategy to introduce replacement mines to supersede ageing deposits.
West Angelas, Hope Downs 1, Brockman 4 and Greater Nammuldi are four other Pilbara mines set to add production in the coming years.
These five new projects are expected to produce a combined 130Mtpa of iron ore in the coming years, offsetting the 19Mt of production depletion expected in 2025 and the 5–10Mt of production depletion expected in 2026 and 2027.
While total iron ore production has remained steady for Rio, with 2024 production only one per cent lower than 2023’s output, the company is facing declining grades, with higher proportions of lower-grade SP10 lump and fines being produced.
With an average iron (Fe) grade of 61.6 per cent, close to the 62 per cent benchmark for Rio’s Pilbara iron ore operations, Rhodes Ridge would not only bring on replacement production but also deliver ore akin to Pilbara Blend grades.
It must be noted that 5.3 billion tonnes of Rhodes Ridge’s 6.8-billion-tonne resource is graded at 62.2 per cent Fe, with 0.6 billion tonnes at 63.9 per cent Fe.
Rio said it is exploring opportunities to blend iron ore from mines such as Rhodes Ridge with the Simandou mine in Guinea, which has a grade of 65.3 per cent Fe.
This will propel the major forward in an era where grade is king, with steelmakers prioritising premium products to decarbonise their operations.
A pre-feasibility study for Rhodes Ridge is expected to be completed later this year, with a feasibility study to follow. First ore is anticipated in 2030.
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