May 17, 2020

Rio Tinto Plans to Invest Billions into Iron Ore and Diamond Projects in India

Operations
Rio Tinto
Iron ore
Diamonds
Admin
2 min
Rio Tinto Plans to Invest $2.5 Billion in Iron Ore and Diamond Projects in India
Mining juggernaut Rio Tinto is continuing its quest to be the leading producer of iron ore. The UK based company announced plans to invest $2.5 billion...

Mining juggernaut Rio Tinto is continuing its quest to be the leading producer of iron ore. The UK based company announced plans to invest $2.5 billion in two separate mining projects in India, reportedly agreeing to invest $2 billion to set up an iron ore project in Odisha and another $500 million in the Bunder diamond mine project in the Indian state of Madhya Pradesh.

“We have the potential for two projects. An iron ore project in Odisha with a $2 billion investment potential and a half a billion dollar investment in Madhya Pradesh in diamonds,” Sam Walsh, CEO of Rio Tinto told reporters at a conference.

“The diamond project is very important downstream because it will provide 30,000 jobs in diamond cutting,” he added. 

Discovered in 2004, the Bunder project is Rio Tinto’s most advanced diamond mining project. The mine, which is currently in the pre-feasibility stage, is expected to place Madhya Pradesh in the top ten diamond producing regions of the world.

• [INFOGRAPHIC] A Clear Look at Diamonds: How They're Formed, Mined and Sold

• Top 10: Diamond Mines in the World

Both sides are still awaiting approvals, including environmental clearance, to move ahead

“We are waiting for approvals, forestry and environment approvals, which, I am hopeful, will come through in the near-term. Prime Minister and I have met three times during the past six months, and I talked to him about the two major projects and the opportunities,” Walsh said.

Rio Tinto is also interested in the prospect of uranium. For years Rio Tinto has shown interest in selling Australian uranium to India but it remains to be seen whether the company will still be producing the nuclear fuel in Australia by then. Walsh and Prime Minister Modi have been in talks to discuss the prospects of uranium exports to India as well as coal mining opportunities

"Once all those steps are in place, clearly there is an opportunity for us and Australia here," Walsh said.

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May 8, 2021

Global iron ore production to recover by 5.1% in 2021

Iron ore
BHP
Anglo American
GlobalData
2 min
After COVID-19 hit iron ore output by 3% 2020, GlobalData analysis points to 5.1% uptick in 2021

Global iron ore production fell by 3% to 2.2bnt in 2020. Global production is expected  to grow at a compound annual growth rate (CAGR) of 3.7% to 2,663.4Mt between 2021 to 2025. The key contributors to this grow will be Brazil (6.2%), South Africa (4.1%), Australia (3.2%) and India (2.9%). Key upcoming projects expected to commence operations include South Flank in Australia (2021), Zulti in South Africa (H2 2021), Serrote Da Laje in Brazil (H2 2021) and Gudai-Darri (2022), according to GlobalData, a leading data and analytics company.

Iron Ore

Vinneth Bajaj, Associate Project Manager at GlobalData, comments: “Declines from Brazil and India were major contributors to the reduced output in 2020. Combined production from these two countries fell from a collective 638.2Mt in 2019 to an estimated 591.1Mt in 2020. The reduced output from the iron ore giant, Vale, was the key factor behind Brazil’s reduced output, while delays in the auctioning of mines in Odisha affected India’s output in 2020.

“Miners in Australia were relatively unaffected by COVID-19 due to effective measures adopted by the Australian Government, while a speedy recovery in China led to a significant 10.4% increase in the country’s iron ore output.”

GlobalData iron ore

BHP

Looking ahead, the global iron ore production is expected to increase by 111.3Mt to 2,302.5Mt in 2021. Rio Tinto is expected to produce up to 340Mt of iron ore, while BHP has released production guidance of 245–255Mt, supported by the start of the Samarco project in December, which is expected to produce between 1–2Mt.The company has retained its guidance for Australian mines at 276–286Mt on a 100% basis, due to scheduled maintenance work at its ore handling plant and tie-in activity at the Area C mine and South-Flank mine.

Anglo American

Bajaj added: “The remaining companies are expected to produce more than 600Mt of iron ore, including FMG, whose production is expected to range between 175–180Mt supported by its Eliwana mine that commenced operations in late December 2020, and Anglo American, which is expecting to produce between 64–67Mt. Vale is expected to resume 40Mt of its production capacity, taking its overall production capacity to 350Mt in 2021, with production guidance of 315-335Mt.”

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