Rio Tinto Ltd (ASX: RIO) shares are on course to finish the day with a gain.
In afternoon trade, the mining giant's shares are up 1% to $124.72.
Why are Rio Tinto shares rising?
Today's gain could have been driven by the release of an announcement out of the miner this morning in relation to its iron ore operations.
According to the release, Rio Tinto, Mitsui, and Nippon Steel will invest US$733 million to develop the West Angelas Sustaining Project. It is part of the Robe River Joint Venture in Western Australia's Pilbara region.
Rio Tinto's share of the investment is US$389 million, which is just over half of the total outlay and in line with its 53% joint venture interest.
The project includes the construction of new non-process infrastructure precincts and 22-kilometres of haul roads. It will however leverage existing West Angelas processing infrastructure.
What is the West Angelas Sustaining Project?
Rio Tinto notes that the project will develop new iron ore deposits in the West Angelas hub, with the aim of maintaining the West Angelas hub's total annual production capacity of 35 million tonnes and extending mining activity for years to come.
Importantly, the project has received all necessary State and Federal Government approvals, so it is now full steam ahead for the joint venture. The first ore is scheduled for 2027.
The company notes that this is part of Rio Tinto's series of replacement projects that underpin the company's ongoing commitment to the Pilbara, and which will have combined total capacity of about 130Mtpa.
Furthermore, management points out that work is well progressed on the pre-feasibility study for Rhodes Ridge. It is one of the world's largest and highest quality undeveloped iron ore deposits, which is targeting an initial capacity of up to 40Mtpa and first ore by 2030.
Commenting on today's news, Rio Tinto's chief executive of Iron Ore, Matthew Holcz, said:
The West Angelas Sustaining Project is built on strong and committed partnerships, both with the joint venture members Mitsui and Nippon Steel, as well as the Yinhawangka and Ngarlawangga Peoples.
The West Angelas hub has been an integral part of Rio Tinto Iron Ore since 2002. Securing these approvals ensures ongoing investment in the hub as we continue to supply high-quality, reliable iron ore to meet our global customers' demand now and into the future.
The release highlights that Rio Tinto has worked closely with the Yinhawangka and Ngarlawangga Peoples to co-design Social Cultural Heritage Management Plans for the West Angelas Sustaining Project. This is to ensure the ongoing protection and management of cultural heritage and the environment.
