BHP and Rio Tinto have announced plans to collaborate on mining up to 200 million tonnes of iron ore at their neighbouring Yandicoogina and Yandi operations in the Pilbara region.

The partnership is guided by two non-binding memoranda of understanding (MOUs) that will explore collaboration on Rio Tinto’s Wunbye deposit and the potential for BHP to supply ore from its Yandi lower channel deposit to Rio Tinto for processing at existing wet plants under agreed commercial terms.

BHP said these new opportunities build on its 2023 Mungadoo Pillar agreement, which allowed mining of ore from the shared tenure boundary that was previously inaccessible.

Rio Tinto iron ore chief executive Matthew Holcz said by working smarter, the company 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,” he said.

The companies have agreed to progress a conceptual study followed by an order of magnitude study. Subject to a final investment decision, first ore from both deposits is expected early next decade.

“This is a clear example of productivity in action,” BHP WA iron ore asset president Tim Day said. “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.”

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