Global miners Rio Tinto and BHP have inked a collaboration that will have them working in tandem to extract up to 200 million tonnes of iron ore at their neighbouring Yandicoogina and Yandi iron ore operations in the Pilbara region of Australia.
Under two non-binding Memoranda of Understanding (MOUs), the companies will explore the potential for a collaboration on the development of Rio Tinto’s Wunbye deposit as well as the potential for BHP to supply its Yandi Lower Channel deposit ore to Rio Tinto for processing at its existing wet plants under agreed commercial terms.
This new move builds on a 2023 agreement the two had to mine the Mungadoo Pillar, which allowed mining of ore from a shared tenure boundary that was previously inaccessible.
Both Rio Tinto and BHP have agreed to progress a conceptual study based on the new pact, followed by an order of magnitude study. Once a final investment decision is made, first ore from both deposits is anticipated for the early 2030s, with implementation subject to regulatory and joint venture approvals, and engagement with Traditional Owners.
“By working smarter, we can better leverage existing infrastructure to unlock additional production with minimal capital requirements,” Rio Tinto Iron Ore chief executive Matthew Holcz said. “Together, we will extend the life of these operations, create additional value, and further support Western Australian jobs and local communities.”
BHP WA Iron Ore Asset President Tim Day added: “This is a clear example of productivity in action – unlocking new opportunities by making the most of our existing resources. By sharing our expertise and infrastructure we will create new value and deliver benefit to our people, partners, customers and communities.”
Source: Rio Tinto