Name of the Project
Koodaideri iron-ore mine.

Location
Pilbara, Western Australia.

Client
Rio Tinto.

Project Description
Koodaideri 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. Mine infrastructure, an airport, mine support facilities and accommodation for employees will be built.

The operation has been designed to use an increased level of automation and digitalisation, 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.

Koodaideri Phase 1 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%.

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

Once complete, the mine will have a capacity of 43-million tonnes a year, underpinning production of the Pilbara Blend.

Potential Job Creation
Throughout the construction period, Rio Tinto expects to employ more than 2 000 people, with 600 permanent roles created once the mine is operational.

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 .

Value
The project entails a $2.6-billion investment.

Duration
Construction will start next year, with first production expected in late 2021.

Latest Developments
A $44-million prefeasibility study (PFS) into Koodaideri has been approved. A final investment decision is subject to the outcomes of the PFS and Rio Tinto’s value-over-volume approach.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Too early to state.

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