[By Guancha Observer Network, Chen Sijia] On June 6 local time, Rio Tinto Group issued a statement announcing the official commissioning of the West坡 iron ore project jointly developed with China Baowu Steel Group in Australia. This iron ore deposit is located in the Pilbara region of Western Australia, with a designed annual production capacity of 25 million tons.

On June 6, Nikkei Asia reported that the Pilbara region is one of the important iron ore production centers in Australia, and the iron ore mined in this area is mainly sold to China. Against the backdrop of US President Trump's announcement to increase steel tariffs to 50%, and the increasing uncertainty facing the steel industry, Rio Tinto Group stated that the West坡 iron ore project will directly benefit its largest customer, Baowu.

The total investment of the West坡 iron ore project is about $2 billion, with Rio Tinto holding 54% and Baowu holding 46%. In the statement, Rio Tinto Group said that the project was completed on time and within budget, which can continue to develop the mining center Paraburdoo in the Pilbara region and enhance the economy of Western Australia State and Australia through royalty fees and taxes.

Rio Tinto and Baowu established a joint venture to jointly develop the West坡 iron ore project in Western Australia. Rio Tinto Group website

Jakob Stausholm, CEO of Rio Tinto Group, said: "The completion of the West坡 iron ore project is an important step in Rio Tinto's expansion plan in the Pilbara, ensuring the long-term operation of one of our oldest mining centers, Paraburdoo." He pointed out that through this cooperation, Rio Tinto can ensure that its largest customer benefits directly.

Baowu is the largest customer of Rio Tinto. Hu Wangming, Chairman of Baowu, said that the West坡 iron ore project is not only the core support point of Baowu and Rio Tinto's global resource layout, but also a strategic cooperation between two leading enterprises in the industry, as well as a model of economic and trade cooperation between China and Australia.

Hu Wangming said: "We are committed to working hand in hand with the Western Australian government, indigenous communities, and all partners to build an inclusive and sustainable cooperative ecosystem. We will also continue to fulfill our corporate responsibilities, promote industrial upgrading through technological innovation, and inject new momentum into regional prosperity and the stability of the global supply chain."

Roger Cook, Premier of Western Australia, pointed out that the West坡 iron ore project is crucial to the state's economy, and the state government will continue to support the resources industry, "which is creating high-quality job opportunities for residents of Western Australia while helping us maintain the living standards we enjoy."

Madeleine King, Minister of Resources of Australia, then said that the commissioning of the West坡 iron ore project is good news for the Pilbara region, residents of Western Australia, and the entire country. "Pilbara is the engine of the national economy, and projects like West坡 iron ore will keep the engine running for future generations of Australians."

Nikkei Asia pointed out that Australia ships more than 900 million tons of iron ore from the Pilbara region each year, most of which is sold to China. At the time of the commissioning of the West坡 iron ore project, the US Trump administration had already announced an increase in steel tariffs to 50%, and the uncertainty facing the steel industry and trade is increasing day by day.

In the past year, the price of iron ore has fallen somewhat, but remains resilient against the backdrop of spreading trade disputes. The report stated that the benchmark price of iron ore this week is about $95 per ton, while the average production cost of Australian companies in 2024 is about $33 per ton.

BMI, an analysis arm of Fitch Solutions, predicted last month that the average price of iron ore in 2025 will be $100 per ton, but the resistance brought by worsening trade conditions may cause prices to fall.

According to CGTN reports, during the China Development High-level Forum in March this year, Jakob Stausholm, CEO of Rio Tinto Group, said that China's growth rate is still very fast, and it is expected to achieve the goal of 5% economic growth. "For us, China's economic improvement is very important, in fact, more than half of our income comes from China."

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Original text: https://www.toutiao.com/article/7512837088048415267/

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