Japanese steelmaker Nippon Steel & Sumitomo Metal Corporation (NSSMC) and Japanese steel trader Mitsui & Co., Ltd. (Mitsui) have announced that Robe River Iron Associates (Rio Tinto 53%, Mitsui 33%, NSSMC 14%) has decided to invest in the development of new iron ore deposits, namely, the Mesa B/C/H in the Robe Valley mine and the Deposit C/D in the West Angelas mine in the Pilbara region of Western Australia.
Subject to government and environmental approvals, development of new deposits is expected to start next year, and first ore is currently anticipated from 2021. The total investment in the subject development is estimated to be $1,546 million, of which NSSMC and Mitsui will invest $216 million and $510 million, respectively, in proportion to each of their equity stakes. NSSMC and Mitsui will work together with Rio Tinto through the Robe River JV to stably procure and supply iron ore, for which further demand is expected.
The existing deposits in both Robe Valley mine and West Angelas mine, currently in operation, are nearing the end of their lifespan.