Rio Tinto is set to develop its most ‘technologically advanced’ mine, following full approval of its AU$3.5 billion investment in the Koodaideri iron ore mine.
Positioned approximately 35 kilometres north west of Rio Tinto’s Yandicoogina mine site in the Pilbara region of Western Australia, Koodaideri will deliver a new production hub for Rio Tinto’s iron ore operations, incorporating a processing plant and infrastructure including a 166-kilometre rail line connecting the mine to the existing network.
Construction is anticipated to commence in 2019, with first production expected in late 2021.
The Koodaideri project is set to create more than 2,000 jobs during the project’s construction phase, and another 600 on-going jobs once operational.
The project will utilise an increased level of automation and digitisation, helping to deliver a safer and more productive mine which is expected to be Rio Tinto’s lowest cost contributor to its flagship iron ore product, the Pilbara Blend.
Through these digital assets, advanced data analytics and automation, Rio Tinto expects to significantly enhance the operation and maintenance of the new mine.
Once complete, the iron ore mine will have an annual capacity of 43 million tonnes, underpinning production of the Pilbara Blend.
Rio Tinto Chief Executive, Jean-Sébastien Jacques, said Koodaideri is a game-changer for Rio Tinto.
“It will be the most technologically advanced mine we have ever built and sets a new benchmark for the industry in terms of the adoption of automation and the use of data to enhance safety and productivity.”
“As we pursue our value over volume approach, targeted high-quality investments such as Koodaideri will ensure we continue to deliver value for our shareholders and Australians.”
“The project will also deliver significant opportunities for local companies and we expect more than A$3 billion will be spent with Australian-based businesses, with opportunities for about A$2.5 billion of spending for Western Australian-based businesses during its development,” Mr Jacques said.