Posted on 16 Jan 2026
Global miners Rio Tinto and BHP have agreed to work together to extract up to 200 million tonnes of iron ore from their neighbouring Yandicoogina and Yandi operations in Western Australia’s Pilbara region, Kallanish notes.
The firms say in a statement that under two non-binding memoranda of understanding that they will explore collaboration on the development of Rio Tinto’s Wunbye deposit.
This also includes a proposal for BHP to supply ore from its Yandi Lower Channel Deposit to Rio Tinto for processing at its existing wet plants under agreed commercial terms.
The potential collaboration builds on a 2023 agreement between the two companies to jointly mine the Mungadoo Pillar. This is enabling access to ore along a shared tenure boundary that had previously been inaccessible.
The companies have agreed to progress a conceptual study followed by an order-of-magnitude study. Subject to a final investment decision, the first ore from both deposits is expected early next decade.
Rio Tinto Iron Ore chief executive Matthew Holcz said the partnership would allow both companies to maximise the value of existing infrastructure while minimising capital investment.
“By working smarter, we can better leverage existing infrastructure to unlock additional production with minimal capital requirements,” Holcz says. “Together we will extend the life of these operations, create additional value.”
BHP WA Iron Ore asset president Tim Day says the initiative demonstrates productivity gains through collaboration. “By sharing our expertise and infrastructure we will create new value and deliver benefits to our people, partners, customers and communities,” he adds.
Source:Kallanish
