Rio Tinto and BHP have agreed to collaborate on a joint iron‑ore project that could unlock up to 200 million tonnes of ore from their adjacent Yandicoogina and Yandi operations in Western Australia’s Pilbara region. The partnership is being explored under two non‑binding memoranda of understanding that focus on shared infrastructure and production, with the goal of extending the life of both companies’ mature assets while keeping capital outlays to a minimum.
The collaboration is driven by a need for capital efficiency and the desire to sustain iron‑ore revenues as both groups shift more focus toward copper and other metals that support the energy transition. “Leveraging existing infrastructure to generate additional production with minimal capital is a key part of our strategy to extend asset life and support local communities,” said Rio Tinto Iron Ore Chief Executive Matthew Holcz.
Operational synergies are central to the deal. Rio Tinto’s Wunbye deposit will be developed in partnership with BHP’s Yandi Lower Channel Deposit, with BHP supplying ore to Rio Tinto’s wet‑processing plants. “This partnership is a prime example of productivity in action, unlocking new opportunities by maximizing existing resources and sharing expertise and infrastructure to create value,” added BHP WA Iron Ore Asset President Tim Day.
The project builds on a 2023 agreement that allowed mining of ore from the shared tenure boundary at Mungadoo Pillar. First ore from the combined operations is expected early next decade, subject to regulatory approvals and engagement with Traditional Owners. The collaboration could add roughly 3 % to global seaborne iron‑ore capacity, reinforcing the Pilbara’s position as a cornerstone of worldwide supply amid strong Asian steel demand.
While the announcement does not disclose specific capital figures, the emphasis on “minimal capital requirements” signals a disciplined approach to investment. Both companies have highlighted the importance of capital discipline in recent earnings releases, underscoring the strategic fit of this partnership within their broader portfolio management plans.
The collaboration is expected to create additional value for shareholders, support local jobs, and strengthen the long‑term resilience of the Pilbara iron‑ore sector.
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