By Rhiannon Hoyle


Miner Rio Tinto said it has got the approvals it needs for a huge iron-ore mine it is building in Africa, as it reported a rise in second-quarter shipments of the steel ingredient from its operations in Australia.

The world's second-biggest miner by market value said Tuesday that all conditions have now been fulfilled for its investment in the Simandou iron-ore deposit in Guinea, including necessary Guinean and Chinese regulatory approvals.

The iron ore buried in Guinea's Simandou mountains is the world's largest known high-grade deposit of the commodity that has yet to be tapped. Its riches have been coveted by miners and investors in a market that has long been dominated by exports from Australia and Brazil.

Rio Tinto, which is developing part of the deposit jointly with a Chinese consortium led by Aluminum Corp. of China, expects to spend roughly $6.2 billion on Simandou, including port and rail infrastructure needed to export the ore. The Simandou project, part of which is being developed by another joint venture, will be the largest brand-new integrated mine and infrastructure investment in Africa, Rio Tinto says.

The companies have begun work on the ground, including on worker camps, roads and water and waste facilities. Rio Tinto expects first production there next year.

The Anglo-Australian miner, already a top exporter of iron ore globally, said it shipped 80.3 million metric tons of iron ore from its cluster mines in remote northwest Australia during the three months through June. That was up 2% versus the same period the year before.

The company, which relies on iron ore for the bulk of its earnings, increased shipments despite the derailment of a driverless train in May. Rio Tinto said it sold more from its port stockpiles.

Rio Tinto runs 17 iron-ore mines in Australia's Pilbara region as well as more than 1,200 miles of rail lines and four independent port terminals. The train derailment, which happened when an autonomous train collided with some stationary wagons, resulted in a section of dual railway being shut for nearly a week.

The company said it still expects to ship between 323 million tons and 338 million tons of iron ore in 2024, reiterating an earlier estimate.

However, Rio Tinto made adjustments to its annual production guidance for some other commodities, including for industrial metal copper.

The company said it now expects its mined copper production to be around the bottom end of an earlier estimate of 660,000 tons to 720,000 tons as it alters its mine plan at the Kennecott operation near Salt Lake City. Rio Tinto said it needs to make changes to manage geotechnical risk in the area it is mining.

The company also said it expects to produce less alumina than previously envisaged because of disruptions to gas supplies at its refining operations in eastern Australia.


Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com


(END) Dow Jones Newswires

07-15-24 2028ET