BHP Group Limited has entered into a definitive option and earn-in agreement with Elemental Royalty Corporation, granting its wholly owned subsidiary the right to acquire Magma Resources doo and its portfolio of three exploration licenses in Serbia’s Bor Mining District. Under the deal, BHP will make an initial cash payment of $200,000 six months after signing, followed by annual payments of $200,000 on each anniversary until the earn-in is complete. In addition, BHP must incur cumulative exploration expenditures of $5 million on the Lenovac North, Lenovac South and Durlan Istok projects within five years. Upon exercise of the option, BHP will hold a 100% interest in Magma, while Elemental retains a 2% net smelter return royalty on each license. BHP may purchase up to half a percent of that royalty in two tranches of 0.25% each, at $5 million per tranche, payable before the eighth and 11th anniversaries of the agreement, respectively. Annual advance royalty payments of $200,000 will be paid to Elemental until commercial production commences.

BHP and Rio Tinto have signed two non-binding memoranda of understanding to investigate joint development of Rio Tinto’s Wunbye deposit and the supply of ore from BHP’s Yandi Lower Channel Deposit to Rio Tinto’s existing wet processing plants. The partnership builds on a 2023 agreement that unlocked access to the Mungadoo Pillar. The conceptual and order-of-magnitude studies will explore leveraging shared infrastructure to extract up to 200 million tonnes of additional iron ore with minimal new capital outlay. Subject to final investment decisions, regulatory approvals and engagement with Traditional Owners, first ore production is targeted for early next decade. BHP WA Iron Ore Asset President Tim Day highlighted that the collaboration exemplifies productivity gains through optimized use of existing assets, delivering value for stakeholders and sustaining regional employment.