Rio Tinto and partners to invest $733 million in West Angelas project

PERTH - Rio Tinto, a prominent player in the global Metals & Mining industry with a market capitalization of $113.6 billion, and its joint venture partners Mitsui and Nippon Steel will invest $733 million to develop the West Angelas Sustaining Project in Western Australia’s Pilbara region, according to a press release statement. According to InvestingPro analysis, the company currently appears slightly undervalued, suggesting potential upside for investors.

Rio Tinto will contribute $389 million to the development, which aims to maintain the West Angelas hub’s annual production capacity of 35 million tonnes of iron ore by developing new deposits. The company’s strong financial position, with an EBITDA of $18.2 billion and a healthy P/E ratio of 10.7, supports its ability to fund such strategic investments. For detailed financial analysis and additional insights, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 top stocks.

The project has received all necessary approvals from State and Federal Government authorities and will extend mining activities at the site, which has been operational since 2002.

"The West Angelas hub has been an integral part of Rio Tinto Iron Ore since 2002," said Matthew Holcz, Rio Tinto Iron Ore Chief Executive.

The development includes construction of new infrastructure precincts and 22 kilometers of haul roads. Autonomous trucks will transport ore from the new deposits to the existing West Angelas processing facilities, with first ore scheduled for 2027.

The project is expected to create approximately 600 jobs during construction and help sustain a workforce of about 950 full-time equivalent positions once operational.

Rio Tinto worked with the Yinhawangka and Ngarlawangga Peoples to develop Social Cultural Heritage Management Plans for the project to ensure protection of cultural heritage and the environment.

The West Angelas Sustaining Project forms part of Rio Tinto’s replacement projects in the Pilbara region, which will have a combined total capacity of approximately 130 million tonnes per annum.

The Robe River Joint Venture, which operates the West Angelas hub, is owned by Rio Tinto (53%), Mitsui Iron Ore (33%), and Nippon Steel (14%). Rio Tinto maintains a strong dividend yield of 4.46% and generates annual revenue of $53.7 billion, demonstrating its significant market presence. InvestingPro subscribers have access to 8 more key insights about Rio Tinto’s financial health and market position.

In other recent news, Rio Tinto has announced several significant developments. The company has reported a $180 million investment in the Norman Creek access project at its Amrun bauxite mine in Queensland, facilitating the mining of a region containing a substantial portion of the mine’s ore reserves. Additionally, Rio Tinto has signed a binding agreement to acquire a 51% stake in the Salares Altoandinos lithium project in Chile, with plans to invest up to $425 million, including the use of its Direct Lithium Extraction Technology.

On the financial front, Morgan Stanley has adjusted its price target for Rio Tinto to AUD121 while maintaining an Equalweight rating, following a model update that resulted in a 2.7% reduction in the company’s fiscal year 2025 earnings per share estimate. Conversely, Deutsche Bank has downgraded Rio Tinto from Buy to Hold, citing concerns over iron ore, despite the company’s consistent performance. These updates reflect the latest strategic and financial moves by Rio Tinto, impacting its operations and market evaluations.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.