Name of the Project
Gudai-Darri (formerly Koodaideri) iron-ore mine.

Location
Pilbara, Western Australia.

Project Owner/s
Rio Tinto.

Project Description
Gudai-Darri will be Rio Tinto’s most technologically advanced mine.

The investment is underpinned by an orebody – more than 20 km long and 3 km wide – of high-quality Brockman ore. 

The operation has been designed to use an increased level of automation and digitisation, helping to deliver a safer and more productive mine, which is expected to be Rio Tinto’s lowest-cost contributor to its industry-benchmark Pilbara Blend product.

Using digital assets, advanced data analytics and automation, Rio Tinto expects to significantly enhance the operation and maintenance of this new mine.

Phase 1 of the project will help sustain Rio Tinto’s existing production capacity by replacing depletion elsewhere in the system. The project will increase the higher-value lump component of the Pilbara Blend, subject to market conditions, from the current average of about 35% to about 38%. This first phase of Gudai-Darri will have a 43-million-tonne-a-year capacity, underpinning production of the Pilbara Blend. 

The project incorporates a processing plant and infrastructure, including a 166 km rail line connecting the mine to Rio Tinto’s existing network. Mine infrastructure, an airport, mine support facilities and accommodation for employees will also be built.

The proposed Phase 2 expansion could increase capacity from the Gudai-Darri production hub to 70-million tonnes a year and beyond.

Potential Job Creation
About 600 permanent jobs are expected to be created once the mine is operational.

To date, the project has awarded local businesses – including Pilbara-, Pilbara Aboriginal- and Western Australia-based businesses – contracts valued at more than A$1.1-billion, supporting about 2 000 jobs in the construction phase.

Potential Job Creation
The development of Gudai-Darri supported more than 3 000 jobs during the construction and design phase. The mine will support around 600 ongoing permanent roles. 

Net Present Value/Internal Rate of Return
The project is expected to deliver an internal rate of return of 20% and capital intensity of about $60/t/y.

Capital Expenditure
$3.1-billion.

Planned Start/End Date
The project was approved in November 2018. Rio Tinto expects production to ramp up in 2022.

Latest Developments
Rio Tinto has delivered first ore from the Gudai-Darri iron-ore mine. Production from the mine will continue to ramp up for the remainder of this year and is expected to reach full capacity during 2023.

With an expected life of more than 40 years and a yearly capacity of 43-million tonnes, Gudai-Darri will underpin future production of Pilbara Blend product. A feasibility study to support an expansion of this new hub is also progressing.

Key Contracts, Suppliers and Consultants
NRW Holdings (bulk earthworks and prestrip contract).

Contact Details for Project Information
Rio Tinto, email media.enquiries@riotinto.com.