Highlights
- Rio Tinto expands Hope Downs 2 with a US$800M investment
- Project targets 31Mtpa iron ore capacity with new infrastructure
- Over 950 jobs to be created in Pilbara development phase
Rio Tinto (ASX:RIO), one of the leading ASX200 stocks, has announced a major expansion of its Hope Downs 2 project in Western Australia’s resource-rich Pilbara region. Partnering with privately held Hancock Prospecting, the company is contributing US$800 million (AU$1.23 billion) toward a broader US$1.6 billion joint venture investment, deepening its long-standing commitment to the region.
This expansion follows regulatory green lights and collaborative discussions with local Indigenous groups, including the Nyiyaparli, Banjima, and Ngarlawangga Peoples. The upcoming development phase will see the construction of critical infrastructure such as non-process precincts, railway crossings, haul roads, and a realignment of approximately 6km of the Great Northern Highway.
Hope Downs 2 is expected to deliver a robust annual production capacity of 31 million tonnes of iron ore, supported by the introduction of two new above-water-table pits. This forms a strategic part of Rio Tinto’s long-term vision for sustaining iron ore production in the Pilbara — a region that has underpinned global steel supply chains for over six decades.
In addition to this, the miner plans to inject a further AU$13 billion over the next three years into developing new mine sites, plants, and equipment to support ongoing operations and future output. Rio Tinto’s investment also underscores the importance of sustaining employment and regional economic contributions, with over 950 construction jobs expected to be generated, and a further 1,000 roles maintained across broader operations.
Chief Executive Simon Trott described the move as a key milestone toward building the next generation of iron ore projects, reinforcing the company’s confidence in the long-term prospects of the Pilbara. The investments aim to benefit local businesses, Indigenous communities, and contribute meaningfully to both state and national economies.
This expansion comes alongside other key developments in the company’s growth pipeline, including progress on a Prefeasibility Study at its Rhodes Ridge Project. The broader strategy seeks to scale Rio Tinto’s mid-term iron ore system capacity to somewhere between 245 and 360 million tonnes per annum.
Investors recently took note as Rio Tinto’s trading volume surged by 235% above its 90-day average on 20 June, as reported by Mining.com.au. With a current market capitalisation of approximately AU$37.8 billion, Rio Tinto continues to assert its position as a significant force within the ASX200 and global mining landscape.
Hope Downs, originally established in 2006, is a testament to the enduring partnership between Rio Tinto and Hancock Prospecting, with a history of collaboration dating back to the early 1960s. Operating across 35 countries, Rio Tinto is also involved in the exploration and production of aluminium, copper, and other essential minerals supporting the energy transition.