Baowu, Rio Tinto’s Australian Iron Ore Project On Track to Begin Production Next Year

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Rio Tinto and China Baowu Steel’s iron ore project in Western Australia’s Pilbara region. Photo: Lu Yutong/Caixin

(Perth, Australia and Beijing) — A $2 billion iron ore project in Australia jointly owned by Rio Tinto PLC and China Baowu Steel Group Corp. Ltd. is on track to begin production next year, according to an executive at the Anglo-Australian miner.

But “it will take time to fully open up the various mining areas” covered by the Western Range project, with production at mines typically increased over a period of a few years, said Simon Trott, chief executive of Rio Tinto’s iron ore business, at a group interview in Perth Friday.

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Rio Tinto and Baowu Steel's $2 billion Western Range iron ore project in Australia is set to start production next year, aiming for 25 million tons annually.
Rio Tinto owns 54% of the JV, with Baowu owning the rest, planning to purchase up to 126.5 million tons over 13 years.
The project reflects strong ties between the companies and shifts focus from the depleting Eastern Range project to Western Range.

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Who’s Who

Rio Tinto PLC: Rio Tinto PLC is an Anglo-Australian mining corporation. In partnership with China Baowu Steel Group Corp. Ltd., it is developing a $2 billion iron ore project in Western Australia's Pilbara region, expected to begin production in 2025. Rio Tinto holds a 54% stake in this joint venture. The company has been collaborating with Baowu on mining projects since 2002 and ships about 250 million tons of iron ore annually to Baowu.

China Baowu Steel Group Corp. Ltd.: China Baowu Steel Group Corp. Ltd. is the world’s largest steelmaker and has been collaborating with Rio Tinto on iron ore mining in Pilbara, Australia, since 2002. It owns 46% of the $2 billion Western Range iron ore project JV with Rio Tinto, with a designed capacity to produce 25 million tons annually. Baowu has agreed to buy up to 126.5 million tons of iron ore over approximately 13 years.

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What Happened When

September 2022：: State-owned Baowu and Rio Tinto announced the joint venture to develop the Western Range project in Western Australia’s Pilbara region.

Early 2023：: Construction of the Western Range project was expected to begin.

July 2024：: Rio Tinto made an iron ore shipment of 4 billion tons from the Pilbara region to Baowu.

Friday, August 9, 2024：: Simon Trott, chief executive of Rio Tinto’s iron ore business, gave a group interview in Perth regarding the Western Range project.

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