Rio Tinto $RIO (-0.92%)
$RIO (+0.66%) and BHP $BHP (-1.36%) have agreed to jointly mine up to 200 million tons of iron ore at their neighboring Yandicoogina and Yandi iron ore operations in Pilbara.
Under two non-binding Memoranda of Understanding (MOUs), the companies will explore the potential for the following collaborations:
Collaborate on the development of Rio Tinto's Wunbye deposit; and supply ore from BHP's Yandi Lower Channel deposit to Rio Tinto for processing at its existing wet plants on agreed commercial terms.
These new opportunities build on a 2023 agreement between Rio Tinto and BHP to mine the Mungadoo Pillar, which allowed ore to be mined from the previously inaccessible joint tenure area.
Matthew Holcz, Chief Executive of Rio Tinto Iron Ore, said: "By working smarter, we can better utilize existing infrastructure to unlock additional production capacity with minimal capital expenditure."
"Together we will extend the life of these operations, create additional value and further support jobs and local communities in Western Australia."
Tim Day, President of BHP WA Iron Ore Asset, said: "This is a clear example of how productivity unlocks new opportunities by making the most of our existing assets.
By sharing our expertise and infrastructure, we will create new value and deliver benefits to our employees, partners, customers and communities."
