06/06/2025 00:07:12 ET|News
AuthorClement Choo<,%20Baowu%20launch%20$2%20bil%20Western%20Range%20iron%20ore%20JV%20in%20Australia&body=https%3A%2F%2Fplattsconnect.spglobal.com%2F%23platts%2FnewsArticle%3FarticleID%3D16552e23-3091-43bd-aa46-34e7ef2029f7%0AArticle%20Highlights%3A%0A%0AFirst%20ore%20processed%20in%20March%0ABaowu%20to%20offtake%20126.5%20million%20mt%20over%2013%20years%0ASimandou%20mine%20due%20online%20by%20end%202025%0A%0A%0AContinue%20reading%20the%20full%20article%20by%20subscribing%20to%20the%20S%26P%20Global%20Commodity%20Insights%20Platts%20Connect.%20Email%20ci.support%40spglobal.com%20to%20learn%20more%20and%20subscribe”>.>,Zhuo ling Heng<,%20Baowu%20launch%20$2%20bil%20Western%20Range%20iron%20ore%20JV%20in%20Australia&body=https%3A%2F%2Fplattsconnect.spglobal.com%2F%23platts%2FnewsArticle%3FarticleID%3D16552e23-3091-43bd-aa46-34e7ef2029f7%0AArticle%20Highlights%3A%0A%0AFirst%20ore%20processed%20in%20March%0ABaowu%20to%20offtake%20126.5%20million%20mt%20over%2013%20years%0ASimandou%20mine%20due%20online%20by%20end%202025%0A%0A%0AContinue%20reading%20the%20full%20article%20by%20subscribing%20to%20the%20S%26P%20Global%20Commodity%20Insights%20Platts%20Connect.%20Email%20ci.support%40spglobal.com%20to%20learn%20more%20and%20subscribe”>.>|EN
Iron
Ores
Steel
Iron ore
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* First ore processed in March
* Baowu to offtake 126.5 million mt over 13 years
* Simandou mine due online by end 2025

Australia’s Rio Tinto and China’s Baowu Group officially opened their $2 billionjoint ventureWestern Range iron ore mine on June 6, the mining major said on the same date.
“Western Range has the capacity to produce up to 25 million mt of iron ore per year and could sustain the existing Paraburdoo mining hub for up to 20 years,” Rio Tinto said. Paraburdoo is an iron ore mine located in the Pilbara region of Western Australia.
Rio Tinto owns 54% of Western Range while Baowu holds the remaining 46%. The first ore from the Western Range mine was processed in March.
“Partnering with Baowu ensures our biggest customer directly benefits with a consistent, dedicated supply of Rio Tinto’s world leading Pilbara Blend iron ore,” its Chief Executive Jakob Stausholm said.
Both companies have signed an iron ore salesagreement for up to 126.5 million mt of iron oreover 13 years. The volume represents Baowu’s 46% interest in the anticipated 275 million mt of production from Western Range via their joint venture.
Western Range is one of several replacement projects, with a total annual capacity of about 130 million mt/year “that underpin Rio Tinto’s ongoing commitment to the Pilbara,” Rio Tinto said.
Over 2025-27, Rio Tinto plans to invest over $13 billion in new mines, plants and equipment.
Currently, Rio Tinto is working on a pre-feasibility study for Rhodes Ridge, which is expected to have a production capacity of up to 40 million mt/year with first ore expected by 2030.
Following the startup of Western Range, Rio Tinto expects its Simandou iron ore project in Guineato go online in 2025.
Owned and managed by Simfer, a joint venture between Rio Tinto, China’s Chalco Iron Ore Holdings and the government of Guinea, the project comprises two of four Simandou concession blocks, with the remaining two blocks being developed by Winning Consortium Simandou (WCS), Baowu and the Republic of Guinea.
“With the new Simandou project, and other new projects, [the[ market is bound to see more options, where especially steel mills can continue to weigh cost-effectiveness in the face of margin caps and ore degradations,” a global steel source said.
Platts, part of S&P Global Commodity Insights, assessed the 62% Fe Iron Ore Index at $95.65/dry mt CFR North China June 5, down 70 cents/dmt from June 4.