AusRAIL, Market Sectors

Mixed news for Rinehart

<span class="" id="parent-fieldname-description"> It was mixed news for Gina Rinehart last week, with Rio Tinto committing $1bn to the Hope Downs joint venture, and the Supreme Court quashing the Queensland Governments’ declaration of Rinehart’s proposed $2bn railway as an infrastructure project of state significance. </span> <p>By Jennifer Perry</p><p>Rio Tinto and its joint venture partner, Hope Downs Iron Ore – established by Rinehart’s Hancock Prospecting -&nbsp will proceed with the development of the Hope Downs 4 iron ore project in Western Australia at an estimated capital cost of US$1.2bn.</p><p>Rio’s share is US$607m, plus an additional $425m to cover the capital cost of linking the mine to Rio’s existing rail, power and port infrastructure (including rolling stock) in the Pilbara.</p><p>The project, which is in the south eastern Pilbara, 30km north of Newman, was brought to feasibility stage and had commenced prefeasibility by Rinehart’s Hancock Prospecting Group, prior to the Hope Downs joint venture that the company established with Rio in 2005.</p><p>Rio is responsible for developing the 52km spur line to connect to the existing Lang Hancock railway and then, to connect to Rio’s infrastructure.</p><p>The Hope 4 mine is adjacent to the two Hope Downs mines already operating and will be developed by the 50% Hancock owned Hope Downs JV to a production capacity of a minimum of 15 million tonnes per annum from 2013.</p><p>Construction is anticipated to commence in early 2011, subject to obtaining necessary regulatory and other approvals.</p><p>&nbsp</p><p>&nbsp</p>