Green light for US$350m Hope Downs mine expansion

Rio Tinto and its joint venture partner Hancock Prospecting will spend US$350m....

  Rio Tinto and its joint venture partner Hancock Prospecting will spend US$350m on a fast-tracked expansion of the new Hope Downs iron ore project in the Pilbara region of Western Australia.At the completion of the expansion, expected by early 2009, the mine will have a capacity of 30 million tonnes per annum. Work on the initial 22 million tonnes per annum project commenced in April 2006 at a cost of US$1b, with first production expected by early 2008. Rio Tinto Iron Ore chief executive, Sam Walsh said the rapid expansion of Hope Downs was an integral part of the company’s plans to lift annual iron ore production in the Pilbara to 220 million tonnes by early 2009. “Thanks to continued strong market conditions, we have been able to bring this highly value accretive expansion forward by one year,” Mr Walsh said. “We are currently investigating other opportunities to increase our Australian iron ore business to about 320 million tonnes in the future.” Hancock Prospecting chairman, Gina Rinehart said Hancock’s was delighted to be part of the bringing forward of stage two of the Hope Downs development at Hope South. “We are working hard to bring other high-potential iron ore projects to the market,” Mrs Rinehart said. Hope Downs is a high-grade Marra Mamba iron ore deposit and will contribute to the Pilbara Blend, the new product that was first shipped in July and comprises Brockman and Marra Mamba ore extracted from nine of Rio Tinto Iron Ore’s 11 mines in the Pilbara.