BHP Group Limited has entered into two non-binding Memoranda of Understanding (MOUs) with Rio Tinto to jointly explore the extraction of up to 200 million tonnes of iron ore from their neighbouring Pilbara operations at Yandicoogina and Yandi. This collaboration builds on a 2023 agreement that opened access to the Mungadoo Pillar, unlocking ore previously inaccessible along the tenure boundary between the two miners.

Under the first MOU, Rio Tinto and BHP will assess the development of Rio Tinto’s Wunbye deposit, leveraging existing rail and port infrastructure. The second MOU contemplates BHP supplying ore from its Yandi Lower Channel Deposit for processing at Rio Tinto’s established wet plants under agreed commercial terms. This structure requires minimal additional capital expenditure by utilizing current processing capacity.

BHP WA Iron Ore Asset President Tim Day emphasized that the deal exemplifies “productivity in action,” noting that sharing expertise and infrastructure will create new value for stakeholders. By combining resources, the partners expect to extend the life of both operations, support local employment in Western Australia, and increase aggregate annual output capacity without major new investments.

Rio Tinto and BHP plan to conduct a conceptual study followed by an order-of-magnitude analysis. Subject to definitive joint venture agreements, regulatory approvals and engagement with Traditional Owners, first ore production is anticipated in the early 2030s. A final investment decision will hinge on the outcomes of these studies and stakeholder consultations.