New joint venture between Rio Tinto and Baowu Steel taps iron ore mine in Western Australia

A new iron ore mine that draws investments from both China and Australia has officially opened on Friday in Western Australia. It has an annual production capacity of?25 million tons of iron ore and could sustain the existing mining hub for up to 20 years.

The newest iron ore mine,?Western Range, has commenced operations in the existing Paraburdoo mining hub of Australia's northwest the Pilbara region. This project is a collaboration between?China Baowu Steel Group?and multinational mining company?Rio Tinto, with ownership stakes split?46 percent and 54 percent, respectively.

With a total investment of?US$2 billion, the development included the construction of a?primary crusher and an?18-kilometer conveyor system.

According to Rio Tinto's media release published last week, the new mine brings stability to Paraburdoo, a traditional mining town with more than 880 residential and fly-in-fly-out (FIFO) workers. The operation also supports the ongoing viability of Paraburdoo and strengthens the Western Australian and national economies through royalties and taxes.

Western Australian Premier Roger Cook, while attending the opening ceremony, affirmed the positive impact of the project in his speech.

Cook said, "The opening of Western Range is a significant achievement, and its importance to Western Australia's economy cannot be overstated".

"My government will continue to back our resources industry, which is creating quality jobs for Western Australians while helping us maintain the standard of life we all enjoy," he added.

The resources sector plays a vital role in Western Australia's economy through job creation and significant investment.

According to the latest data released on the state government's website, Western Australia's mining industry set a record high in employment for 2024, for jobs in 2024, with 135,693 on-site Full-time Equivalent (FTE) positions. This shows the ongoing strength of mine production and construction activities in the State.

This is the eighth year in a row that mining jobs have grown, with record highs in the last six years. Iron ore mining was the largest contributor to these employment figures, providing 65,359 full-time positions.

Investment in Western Australia's mining and petroleum sectors reached $32 billion in 2024, remaining broadly similar to the previous year. The Western Range iron ore project served as one of the key contributors to this investment level.

The Western Range Project commenced large-scale construction two years ago, with road-based operations beginning in June 2024. In March this year, the project's most critical infrastructure -- the 18-kilometer conveyor belt system -- was completed and put into operation, and started heavy-load trial production.

Before this, the project mainly relied on road transportation, but the smooth operation of the conveyor belt system further enhanced the ore transportation capacity, ensuring a more stable raw material supply for downstream production.

As an important component of Baowu Resources' overseas resource development, the progress of the Western Range Project helps optimize the global iron ore supply chain and plays a significant role in building the most reliable, greenest, and safest raw material supply chain for the steel industry, according to official news released on Baowu Group's website.

Hu Wangming, chairman of China Baowu Group, said the success of the Western Range project "is not only a milestone in China-Australia resource co-operation, but also a vivid reflection of joint efforts and resilience from all parties involved".

The Western Range project is a model of China-Australia economic and trade cooperation, he said. "Our joint efforts in green, low-carbon development and collaborative innovation have set new industry benchmarks and contributed valuable insights and strength to the sustainable development of global resources," he said.

"We are committed to working hand in hand with the Western Australian Government, Indigenous communities, and partners from all sectors to build an inclusive and sustainable cooperation ecosystem. We will also continue to fulfill our corporate responsibilities and drive industrial upgrading through technological innovation, injecting new momentum into regional prosperity and the stability of global supply chains," he added.

The significance of this partnership with China Baowu was also emphasized by Rio Tinto Chief Executive Jakob Stausholm during the mine opening ceremony.

"Opening Western Range is an important step in Rio Tinto's extension plans in the Pilbara and ensures the longevity of one of our oldest mining hubs, Paraburdoo, which began operating in 1972," Stausholm said.

"Partnering with Baowu ensures our biggest customer directly benefits with a consistent, dedicated supply of Rio Tinto's world-leading Pilbara Blend iron ore,"he added.

Contact the writer at xinxin@chinadaily.com.cn