Rio Tinto, BHP explore Pilbara iron ore partnership

Rio Tinto Group and BHP Group Ltd. agreed to explore a collaboration for the extraction of up to 200 million mt of iron ore from their neighboring Yandicoogina and Yandi operations in Australia's Pilbara region, the UK-headquartered miner said Jan. 14.

Under two non-binding memoranda of understanding, the companies will look into partnering for the development of Rio Tinto's Wunbye deposit. Additionally, Australian miner BHP will supply ore from its Yandi deposit to Rio Tinto for processing at its wet plants, according to the statement.

"By working smarter, we can better leverage existing infrastructure to unlock additional production with minimal capital requirements," said Matthew Holcz, Rio Tinto's CEO for iron ore. "Together, we will extend the life of these operations, create additional value, and further support Western Australian jobs and local communities."

"This is a clear example of productivity in action – unlocking new opportunities by making the most of our existing resources," Tim Day, BHP's president for Western Australia iron ore assets, said.

A conceptual study will be conducted, as well as an order-of-magnitude study. Subject to a final investment decision, the first ore from the companies' deposits is targeted for the early 2030s, said the statement.

The development follows a 2023 agreement where Rio Tinto and BHP agreed to mine the Mungadoo Pillar, which was previously inaccessible.

The mining giants have recently partnered to initiate on-site testing of battery-electric haul trucks at BHP's Jimblebar mine in Australia, aiming to assess the feasibility of the technology as an alternative to diesel usage in large-scale iron ore mining operations.

Platts, part of S&P Global Energy, assessed the DBF iron ore Western Australia-Qingdao N China at $7.50/mt on Jan. 14, unchanged from the previous day.