Simon Trott’s vision to make Rio Tinto the world’s most valued mining company has been further sharpened following news Rhodes Ridge has moved a step closer to production.
Rio’s chief executive has noted his new strategy will ensure “the right assets” are in the “right markets”, with iron ore a key platform in the company’s growth strategy – something emphasised by the Rhodes Ridge, which has been called “the last remaining crown jewel in the Pilbara”.
Earmarked as one of the world’s best undeveloped iron ore deposits, development has been made to establish production at the project thanks to a $294 million investment in feasibility work.
Rhodes Ridge is believed to contain 6.8 billion tonnes of Mineral Resources at an average grade of 61.6 per cent iron (Fe), including 5.3 billion tonnes at 62.2 per cent Fe.
This latest step forward aligns with Trott’s new strategy for the company, currently sitting at a market cap of $193 billion, with keeping the Pilbara “as the iron ore engine room for the world” a clear indicator of his intentions.
“We are building from a position of strength for Rio Tinto’s next chapter, sharpening and simplifying the business to deliver leading returns. We will drive performance through discipline, productivity and unmatched growth to unlock the full potential of our diversified portfolio of world-class assets,” Trott said at the time of announcing the company’s strategy refresh.
Rhodes Ridge is clearly, therefore, deemed core to operations after it was announced “non-core” projects would be sold to raise around $15 billion in capital.
Rio’s Simandou operations in Africa also nods to a greater focus on iron, after the project celebrated start of production in November as Africa’s largest greenfield integrated mine and infrastructure project.
“This outstanding achievement has been made possible through the dedicated hard work of thousands of our colleagues, and the complementary strengths and expertise of Rio Tinto, our SimFer partners, the Government of Guinea and Winning Consortium Simandou,” Trott said at the time.
Alongside Rhodes Ridge, Rio Tinto is bolstering its iron ore portfolio as the company seeks to capture the momentum of Simon Trott’s recent restructure, with Matthew Holcz appointed iron ore chief executive in September. Holcz has been charged with coordinating the unification and alignment of Rio’s international iron ore assets under one umbrella.
Through Rhodes Ridge and Simandou, not only has Rio Tinto reinforced its commitment to iron ore but it has also affirmed its intent to scale and achieve organic growth through capital discipline and international expansion.
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