Rio Tinto and BHP have announced plans to jointly mine up to 200 million tonnes (mt) of iron ore from their adjacent Yandicoogina and Yandi sites in the Pilbara region of Western Australia (WA).
This initiative is facilitated by two non-binding memorandums of understanding (MoUs). It involves joint efforts at Rio Tinto’s Wunbye deposit and the utilisation of BHP’s Yandi Lower Channel Deposit ore at the former’s wet plants under agreed terms.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
This potential collaboration follows a 2023 agreement between Rio Tinto and BHP to mine the Mungadoo Pillar, previously unreachable due to shared tenure boundaries.
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.”
The two mining majors have outlined a strategy beginning with a conceptual study, followed by an order of magnitude study.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataA final investment decision will determine the commencement of ore extraction from both deposits, which is anticipated early next decade.
The implementation is contingent upon regulatory and joint venture (JV) approvals and consultations with traditional owners.
BHP WA iron ore asset president Tim Day said: “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.”
Yandi is situated 178km north-west of Newman in the Pilbara region, on the ancestral land of the Banjima people. This iron ore mine, part of a JV involving BHP (85%) and Mitsui and ITOCHU (15%), has seen significant production achievements since its inception.
Yandicoogina is situated around 95km north-west of Newman in the East Pilbara. Considered to be another high-output mine in the area, Yandicoogina produces Hamersley Iron Yandi fines for steelmaking across east Asia and southern China.
Notably, it also pioneers mining innovation with autonomous haul trucks.
In a separate development, last December, BHP and Rio Tinto introduced Australia’s first Cat 793 XE Early Learner battery-electric haul trucks at the former’s Jimblebar mine. This marked the beginning of trials for Caterpillar’s battery-electric technology as a sustainable alternative to diesel in large-scale mining operations.
The tests will guide the evolution of technology and processes necessary for reducing greenhouse gas emissions in future mining sites.
Earlier this month, Rio Tinto and Glencore announced that they are in preliminary merger discussions to form the world’s largest mining group, with a combined market capitalisation of almost $207bn.
