Rio Tinto-led JV gets Rhodes Ridge in Pilbara rolling with $520m investment on feasibility study, exploration

Rio Tinto and its joint venture partners have approved feasibility studies and exploration work to develop phase one of the $20 billion Rhodes Ridge iron ore project near Newman. A $294m feasibility study, which is expected to be finished in 2029, will assess the development of a mining operation at Rhodes Ridge that can initially produce between 40 million tonnes and 50mt of iron ore a year. Rhodes Ridge has a potential annual iron ore production capacity of about 100mt, according to Rio, which would underpin the mining giant’s Pilbara iron arm for decades to come. Rio has a 50 per cent stake in the project and is its developer. Japan’s Mitsui has 40 per cent and billionaire heiress Angela Bennett the remaining 10 per cent. The trio intend to invest a further $225m on exploration between 2026 and 2028 as part of ongoing study phases. Rio iron ore chief executive Matt Holcz said Rhodes Ridge’s size and high-quality ore had the potential to underpin his flagship Pilbara business unit for decades to come. “Earlier this year the joint venture welcomed Mitsui into the project, confirming Rhodes Ridge as one of the best undeveloped iron deposits in the world,” Mr Holcz said. “We’re excited to keep working with all our partners as we progress the feasibility study.” Mitsui bought its 40 per cent stake in Rhodes Ridge from heirs of WA iron ore pioneer Peter Wright in February. The Japanese conglomerate paid up to $US5.3b ($8.3b) for its slice of Rhodes Ridge’s future riches, valuing the entire Pilbara project at just over $20b. The once-disputed tenements were controlled by Mr Wright and prospector Lang Hancock in the 1960s and have been the source of lucrative royalties for the Wright heirs, in line with agreements struck in the 1980s. Of the 40 per cent bought by Mitsui, 25 per cent was sold by VOC Group — a private company owned by Peter Wright’s grandchildren Leonie Baldock and Alexandra Burt. AMB Holdings — the private company of Mr Wright’s daughter Angela Bennett — signed a heads of agreement to sell 15 per cent of her share in the joint venture. AMB retained a 10 per cent stake in Rhodes Ridge following the sale. Rio has owned half of the deposit for more than 50 years. “Rhodes Ridge will be a staged development. This investment and feasibility study is focused on phase one, with an initial hub likely in the northern part of the project,” Rio stated on Tuesday. “It will leverage Rio Tinto’s existing rail, port and power infrastructure. “Subject to relevant regulatory approvals, first ore from the initial Rhodes Ridge development, located 40km north-west of Newman, is expected by 2030.” Rhodes Ridge will be a key piece of Rio’s strategy to “sustain (annual) mid-term capacity” of between 345mt and 360mt of iron ore from the Pilbara. At Rio’s annual general meeting in May, chairman Dominic Barton flagged a $20b spend on new mines, plant and equipment in the Pilbara over the next three years. The miner is making up for lost time after facing regulatory hurdles bringing new mining operations online in the immediate wake of the Juukan Gorge disaster five years ago.