“Koodaideri is a game-changer for Rio Tinto,” Rio Tinto Chief Executive J.S. Jacques said. “It will be the most technologically advanced mine we have ever built and sets a new benchmark for the industry in terms of the adoption of automation and the use of data to enhance safety and productivity.”

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 around 38%, the company said. It is expected to deliver an internal rate of return of 20% and capital intensity of around $60 per mt of annual capacity, highly competitive for a new mine considering the additional infrastructure of rail spur, airport, camp and road access required. The operation has been designed to utilize an increased level of automation and digitization, 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. Through the use of digital assets, advanced data analytics and automation, the company expects to significantly enhance the operation and maintenance of this new mine.

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