Australian mining giant Rio Tinto has recently announced an investment of US$1.6 billion to develop the Hope Downs 4 iron ore project in Western Australia and to link it with Rio Tinto's existing rail, power and port infrastructure in the Pilbara region.
Rio Tinto and its joint venture participant, Hope Downs Iron Ore Pty Ltd, will proceed with the development of the mine at an estimated capital cost of US$1.2 billion (Rio Tinto share US$607 million), to be shared equally by the JV partners.
The new open-cut mine will have an annual capacity of 15 million metric tons of high-quality iron ore, with first production anticipated in 2013.
Construction of the project is anticipated to commence in early 2011, following the obtaining of necessary regulatory and other approvals.