Rio Tinto is investing $1.8 billion USD ($2.8 billion AUD) to extend its Brockman mine in the Pilbara region of Western Australia. The Brockman Syncline 1 project aims to produce up to 34 million tonnes of iron ore per annum and is expected to create 1,000 jobs. This investment will extend the operational life of the mine and ensure continued iron ore production, with the company expecting the first ore to be produced in 2027, ahead of the previously anticipated 2028 timeline. Construction is slated to begin this year, pending final approvals.
The decision to proceed with the Brockman expansion follows the approval of Rio Tinto’s $10.7 billion acquisition of Arcadium Lithium by the courts. The acquisition, aimed at expanding Rio Tinto’s presence in the lithium market, has faced some investor scrutiny. Some investors have voiced concerns regarding the proposed multi-billion dollar share issuance intended to fund the acquisition, suggesting that Rio Tinto should consider increasing its debt levels instead. The Brockman Syncline 1 investment underscores Rio Tinto’s commitment to its core iron ore business, even as it diversifies into other commodities.
