Mining heavyweight Rio Tinto (ASX:RIO) has thrown its weight behind Western Australia’s iron ore heartland once again, committing $1.1 billion to extend operations at the West Angelas hub.
The investment comes through the Robe River joint venture alongside Japanese partners Mitsui and Nippon Steel.
It signals continued confidence in Pilbara iron at a time when global steel demand faces headwinds from China’s property slump.
Joint Partners Back 35 Million Tonne Hub
Rio will shoulder $589 million of the total outlay, with Mitsui contributing $362 million and Nippon Steel adding $154 million.
The trio received all state and federal approvals in early October 2025.
West Angelas currently produces 35 million tonnes annually. The project will maintain that capacity by developing fresh ore deposits within the existing mining hub.
West Angelas iron ore hub in the Pilbara
Key project details:
- First ore scheduled for 2027
- 600 construction jobs during build phase
- 950 permanent roles once operational
- 22 kilometres of new haul roads
- Autonomous trucking to existing processing plant
Rio Tinto Iron Ore Chief Executive Matthew Holcz emphasised the partnership angle.
“The West Angelas Sustaining Project is built on strong and committed partnerships, both with the joint venture members Mitsui and Nippon Steel, as well as the Yinhawangka and Ngarlawangga Peoples,” he said in a statement.
Part of $20 Billion Pilbara Renewal Push
West Angelas represents one piece of a much larger puzzle.
Rio has mapped out a suite of replacement projects across the Pilbara with combined capacity reaching 130 million tonnes per year.
The company plans to invest more than $20 billion on new mines, plants and equipment between 2025 and 2027.
Major projects in the pipeline:
- Western Range: $3 billion joint venture with Baowu, opened June 2025, 25Mtpa capacity
- Brockman Syncline 1: $2.7 billion investment announced March 2025, 34Mtpa capacity
- Hope Downs 2: $2.4 billion with Hancock Prospecting, approved June 2025, 31Mtpa capacity
- Rhodes Ridge: Pre-feasibility study underway, targeting 40Mtpa initial capacity by 2030
This aggressive capital deployment follows $12.9 billion already spent in the Pilbara between 2022 and 2024.
Rio maintains a clear pathway to sustain system capacity between 345 and 360 million tonnes annually from its Western Australian iron ore operations.
Robe River’s 50-Year Legacy
The Robe River joint venture holds deep roots in Australia’s mining history.
Operations began in the Robe Valley near Pannawonica back in 1972, when the first ore shipment departed Cape Lambert aboard the Fujisan Maru bound for Japan.
That initial cargo contained 68,589 tonnes of iron ore.
In the five decades since, the partnership has shipped more than 1.7 billion tonnes of iron ore, cementing ties between Australia and Japan.
Rio Tinto holds a 53% stake in the joint venture, with Mitsui Iron Ore Development controlling 33% and Nippon Steel the remaining 14%.
The West Angelas expansion arrived within a year of the venture’s 50th anniversary celebrations in October 2022.
Indigenous Partnership Takes Centre Stage
Rio worked closely with Traditional Owners to co-design Social Cultural Heritage Management Plans for the West Angelas project.
The company wants to avoid repeating mistakes like the 2020 destruction of Juukan Gorge, a 46,000-year-old Aboriginal site that sparked global outrage.
The new plans aim to protect cultural heritage and environmental values throughout the mine’s extended life.
Rio recently committed $7.6 million over five years to support health services for Pilbara Aboriginal communities.
Iron Ore Remains Core Despite Diversification
Iron ore still generates over 80% of Rio’s underlying earnings.
The mineral remains king despite the company’s push into copper, lithium and other energy transition metals.
China’s property sector slowdown has weighed on iron ore prices throughout 2024 and 2025.
Benchmark 62% Fe fines averaged around $158 per tonne in 2024, down from peaks above $200 in 2021.
Rio maintains confidence in long-term demand fundamentals even as near-term headwinds persist.
Rio Tinto’s Pilbara iron ore operations
What This Means for Investors
The West Angelas commitment underscores Rio’s conviction in Pilbara iron despite mounting uncertainty around Chinese steel demand.
Management clearly sees value in replacing depleting ore bodies rather than allowing capacity to decline.
Trott’s elevation signals iron ore will remain central to Rio’s strategy under new leadership.
Rio Tinto shares (ASX: RIO) last traded at $119.85, sitting within a 52-week range of $105.11 to $136.82.
The stock carries a market capitalisation of approximately $143 billion.
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FAQs
Q: What is the Robe River joint venture?
A: The Robe River joint venture is a long-standing partnership between Rio Tinto (53%), Mitsui (33%), and Nippon Steel (14%) that has operated in Western Australia’s Pilbara region since 1972.
Q: When will the West Angelas expansion begin production?
A: First ore from the new deposits is scheduled for 2027, following a construction phase that begins in late 2025.
Q: How many jobs will the project create?
A: About 600 jobs will be created during construction, with the project sustaining approximately 950 permanent roles once operational.
Q: What is Rio Tinto’s total Pilbara investment plan?
A: Rio Tinto plans to invest more than $20 billion in Pilbara mines, plants and equipment between 2025 and 2027, building on $12.9 billion already spent from 2022 to 2024.
