Rio Tinto and BHP have agreed to collaborate on mining up to 200 million tonnes of iron ore at their neighbouring Yandicoogina and Yandi iron ore operations in the Pilbara, Western Australia.
Under the terms of two memoranda of understanding, the companies will collaborate on the development of Rio Tinto’s Wunbye deposit and for BHP to supply ore from its Yandi lower channel deposit to Rio Tinto for processing at existing wet plants under agreed commercial terms.
The latest agreements build on a 2023 agreement between BHP and Rio Tinto to mine the Mungadoo Pillar, which allowed mining of ore from the shared tenure boundary that was previously inaccessible.
Rio Tinto Iron Ore CEO Matthew Holcz said: “By working smarter, we can better leverage existing infrastructure to unlock additional production with minimal capital requirements.
“Together we will extend the life of these operations, create additional value, and further support Western Australian jobs and local communities.”
BHP and Rio Tinto have agreed to advance a conceptual study followed by an order-of-magnitude study. First ore from both deposits is expected early next decade, subject to a final investment decision.
“This is a clear example of productivity in action,” BHP WA iron ore asset president Tim Day said.
“Unlocking new opportunities by making the most of our existing resources.
“By sharing our expertise and infrastructure ,we will create new value and deliver benefits to our people, partners, customers and communities.”
