Mitsui & Co., Nippon Steel and Rio Tinto will spend $733 million developing new deposits at the West Angelas mine in Western Australia, the companies said Tuesday, doubling down on iron ore just as analysts predict prolonged price weakness.
The investment will maintain the hub’s annual capacity at 35 million tons as existing sites deplete. Rio Tinto holds a 53% stake in the Robe River joint venture, with Mitsui controlling 33% and Nippon Steel 14%. The Japanese trading house will contribute AU$329 million ($217 million), while Nippon Steel’s share amounts to roughly AU$140 million ($93 million).
First ore is expected in 2027, a timeline that positions the project to enter production during what many forecasters see as a challenging period for the commodity. Iron ore prices are forecast to average around $95 per ton through 2025 and 2026, pressured by weak Chinese steel demand and ample supply, according to analysts at Wood Mackenzie and ING.
The West Angelas expansion is part of Rio Tinto’s broader strategy to sustain output from its Pilbara operations through replacement projects totaling 130 million tons of annual capacity. The venture will create approximately 600 construction jobs and sustain 950 operational roles once mining begins.
