ADELAIDE, Australia—Rio Tinto PLC and China Baowu Steel Group Corp. agreed to develop a $2 billion iron-ore project in Australia, one of the largest joint investment deals since diplomatic and trade ties between Australia and China deteriorated during the pandemic.
Rio Tinto said production of iron ore from the new Western Range project in the remote Pilbara region of Western Australia would start in 2025. Rio Tinto will own 54% of the joint venture set up to run the operation, with Baowu owning the rest.