The McGowan Government has welcomed the significant investment decision of Rio Tinto and Baowu to form a joint venture to develop a new iron ore mine in the Pilbara.
The proposed $2 billion USD ($3 billion AUD) joint venture will support about 1,600 jobs during the construction phase and 800 ongoing operational jobs.
Pending shareholder, regulatory and State Agreements approvals, construction of the Western Range iron ore project is expected to begin in early 2023, and will include construction of a primary crusher and an 18 kilometre conveyors system linking it to the existing Paraburdoo processing plant.
The annual production capacity of the mine will be about 25 million tonnes and the first ore is expected to be shipped in 2025.
Rio Tinto will be the majority stakeholder in the joint venture with their long-standing customer China Baowu Steel Group.
Rio Tinto and Baowu have committed to continuing to work together to improve environmental performance across the steel-making value chain.
Rio Tinto and the Yinhawangka Aboriginal Corporation have also jointly developed a Social, Cultural and Heritage Management Plan for the Western Range project.
As stated by Premier Mark McGowan:
"This significant investment in Western Australia reflects the State Government's efforts in attracting investment, business and long-term developments that support jobs and boosts our economy.
"Western Australia's strength is being able to provide a continued stable investment environment, which is testament to our growing economy, innovative and high-technological capabilities as well as our outstanding training opportunities and skilled workforce."
As stated by State Development, Jobs and Trade Minister Roger Cook:
"The McGowan Government is committed to ensuring Western Australia continues to be a secure and attractive destination for investment.
"We welcome the Western Range iron ore project for driving thousands of more local jobs and supporting more local businesses.
"The project is a significant investment for the resources sector and the economic future of Western Australia."
As stated by Pilbara MLA Kevin Michel:
"This is another significant boost for workers and businesses in the Pilbara.
"The Pilbara is one of the most important and vital regions for Australia.
"Investments like this with appropriate approval and consultation provide welcome opportunities for the region."
