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Rio Tinto PLC on Wednesday reported its first ore delivery from the Gudai-Darri iron ore mine.
The FTSE 100 miner said the capital cost for the mine - its first greenfield mine in the Pilbara, Western Australia, in more than a decade - is estimated at $3.1 billion, with the firm's total capital expenditure guidance for 2022 unchanged at around $8 billion.
Production from the mine will continue to ramp up through the remainder of this year and is expected to reach full capacity during 2023, Rio Tinto said.
‘The mine's commissioning and ramp-up is expected to increase Rio Tinto's iron ore production volumes and improve product mix from the Pilbara in the second half of this year. Full-year shipments guidance for 2022 remains at 320 to 335 million tonnes (100% basis) subject to risks around the ramp up of new mines, weather and management of cultural heritage,’ the company said.
Chief Executive Simon Trott said ‘The commissioning of Gudai-Darri represents the successful delivery of our first greenfield mine in over a decade, helping to support increased output of Pilbara Blend, our flagship product. It sets a new standard for Rio Tinto mine developments through its deployment of technology and innovation to enhance productivity and improve safety.’
The company also said that Gudai-Darri will be powered by a 34 megawatt solar farm, which is expected to supply about a third of the mine's average electricity demand once construction is complete in August. This is to help support Rio Tinto's carbon emission reduction targets.
Rio Tinto shares were up 0.3% at 5,572.00 pence each on Wednesday morning in London.
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