Western Range iron ore project highlights strength of collaboration

The Western Range project, a significant iron ore mine in Australia that was recently put into operation, serves as a cornerstone of the longstanding resource partnership between Australia and China, said company executives and industry experts.

The joint venture between Rio Tinto (54 percent) and China Baowu Steel Group (46 percent) underscores the deep-rooted collaboration between the two companies, a partnership that has evolved over half a century and contributed substantially to China's industrial growth, said Jakob Stausholm, CEO of Rio Tinto.

"China's development has been exceptional and as Western Australia has tremendous resources and is supportive of mining, the business, the trading and the partnership between China and Australia have grown many-fold," he said.

"The launch of Western Range represents more than just the unveiling of a new mining operation, it signifies the enduring strength and future trajectory of the resource trade between the two nations."

With a capacity to produce up to 25 million metric tons of iron ore per year, the project could sustain the existing Paraburdoo mining hub for up to 20 years.

China, the manufacturing hub of the world, has been fundamental for global mining giants like Rio Tinto and accounted for a commanding 57 percent of the company's total revenue last year, solidifying its position as Rio Tinto's largest customer.

Industry experts believe attracting steel mill clients to invest in iron ore projects not only strengthens cooperation with downstream customers and stabilizes iron ore sales channels, but also diversifies the risks of mine investment.

For China Baowu, participating in joint venture iron ore projects also secures access to low-cost, high-quality iron ore resources from major miners, ensuring stable raw material supply and quality, and effectively mitigating risks from future iron ore price increases, said Xu Xiangchun, information director and analyst at iron and steel consultancy Mysteel.

According to Rio Tinto, beyond just a market for the company, China has been rapidly evolving into a crucial sourcing partner, with procurement from the country exceeding $4.2 billion in the past year alone, reflecting a deepening economic interdependence.

China's reliance on imported iron ore has remained high, with primary sources being countries like Australia and Brazil. According to data from the General Administration of Customs, China imported 1.237 billion tons of iron ore in 2024, a year-on-year increase of 4.9 percent, marking a record high import volume.

Stausholm emphasized that partnerships with Chinese companies, universities, governments and industries are fundamental to the existence of global mining companies.

The exceptional development of China, coupled with Western Australia's abundant resources and supportive mining policies, has fostered a robust and mutually beneficial business ecosystem, he said.

Visionary joint venture partnerships, such as the one behind Western Range, have been instrumental in this success, contributing nearly half a billion tons to the over four billion tons of iron ore Rio Tinto has shipped to Chinese steel mills, he added.

"This enduring collaboration began more than fifty years ago with the first shipment of Pilbara iron ore to China, laying the foundation for a resource partnership that continues to deepen and expand," he said.

"The opening of Western Range marks the next chapter in this vital relationship with Baowu, extending beyond traditional mining to encompass joint efforts in decarbonizing the steel value chain and reducing emissions, securing a sustainable future for this crucial industry through collective knowledge and commitment."

Hu Wangming, chairman of China Baowu Group, said the success of the Western Range project is not only a milestone in China-Australia resource cooperation, but also a model of China-Australia economic and trade cooperation.