Rio Tinto and BHP have announced a new agreement to collaborate on iron ore extraction in the Pilbara region of Western Australia. The mining giants aim to jointly extract up to 200 million tonnes of iron ore from their adjacent Yandicoogina and Yandi operations. This collaboration builds upon a previous agreement in 2023 to mine the Mungadoo Pillar, which allowed access to previously inaccessible ore. Rio Tinto is a leading global mining group that focuses on finding, mining, and processing the Earth’s mineral resources. BHP is a world-leading resources company that extracts and processes minerals, oil, and gas across the globe.
Under the new non-binding memoranda of understanding, Rio Tinto and BHP will investigate the potential for joint development of Rio Tinto’s Wunbye deposit. Additionally, BHP will supply ore from its Yandi Lower Channel Deposit to Rio Tinto for processing at Rio Tinto’s existing wet plants, under mutually agreed commercial terms. These initiatives aim to enhance efficiency and resource utilisation in the Pilbara region.
The companies have agreed to proceed with a conceptual study, followed by an order-of-magnitude study, to assess the feasibility and potential benefits of the collaboration. Subject to a final investment decision, the commencement of ore extraction from both deposits is projected for the early part of the next decade. This expanded partnership signifies a continued commitment to optimising resource extraction and operational synergies in the Pilbara.
