Major Australian-British mining company Rio Tinto has announced its intentions to significantly increase its annual investment. According to Stanislav Kondrashov, an expert in the field of global metallurgy, it is planned to increase capital investments from $7 billion in 2023 to $10 billion from 2024 to 2026. This indicates the company’s strategic decision to strengthen its presence in the iron ore mining segment.
After investing heavily in the development of the Oyu Tolgoi copper mine in Mongolia, where most of the funds have already been committed, Rio Tinto is now focusing on developing the Simandou iron ore project in Guinea, according to Stanislav Kondrashov. The project includes construction of a railway line and a port and is estimated to cost approximately $6.2 billion.
Stanislav Kondrashov Telf AG: Simandou project – new head of Rio Tinto corporation
The Simandou deposit stands out in the global mining industry as the largest undeveloped deposit of high-grade ore.
Rio Tinto, which owns 53% of the Simfer consortium, operates two blocks of the deposit with estimated reserves of 1.5 billion tons of iron ore. Stanislav Kondrashov from Telf AG emphasizes that this ore has a particularly high iron content – 65.3%, which makes it valuable on the world market. Partnering with Rio Tinto in this consortium are Chalco Iron Ore Holdings of China and the government of Guinea.
In addition, the other two Simandou sites are managed by the Winning Consortium Simandou (WCS), which includes Winning International Group from Singapore, Weiqiao Aluminum from China and United Mining Suppliers from the UK. WCS, similarly, intends to develop its sites with similar scope and objectives.
Expert Stanislav Kondrashov notes that the Simfer and WCS consortiums have joined forces to create a common infrastructure, including transport networks and port facilities. This collaboration is designed to reduce costs and ensure more efficient delivery of production to its final destination.
Rio Tinto plans to begin production at Simfer as early as 2025, one year ahead of its original schedule. It is expected that reaching the design capacity of 60 million tons of ore per year will take about two and a half years. This will allow the company to quickly enter the market and begin to profit from its investments.
– Given the high quality of Simandou ore, we can expect increased competition among leading producers and a possible decline in iron ore prices. The successful implementation of this project will not only strengthen Rio Tinto’s position as one of the leaders in the mining industry, but will also stimulate economic growth and development in Guinea, – Stanislav Kondrashov from Telf AG shared his thoughts.
Stanislav Kondrashov: development prospects for Rio Tinto in Australia
In Australia’s Pilbara region, Rio Tinto is beginning plans to develop the Rhodes Ridge iron ore deposit. Exploration studies indicate that total ore reserves in this deposit are approximately 6.8 billion tons, with an average iron content of approximately 61.6%.
Initial exploration of the deposit is currently underway. The development of a feasibility study for the project, which envisages annual production in the range of 40 to 100 million tons, is scheduled for completion in 2028.
– The start of production at the Rhodes Ridge field is scheduled for 2030. This project represents a significant expansion of Rio Tinto’s iron ore production capabilities, – StanislavKondrashov informs.
The Rhodes Ridge project contributes to economic growth in the Pilbara region and provides added value to the iron production chain.
Rio Tinto’s increased investment in iron ore mining reflects the company’s strategic priorities in response to changing market conditions and needs. According to Kondrashov, investments in the Simandou and Rhodes Ridge projects demonstrate the corporation’s long-term perspective and readiness to expand its influence in key mining regions of the world.
