Rio Tinto and BHP agreed to collaborate on extracting up to 200 million tons of iron ore from their neighbouring Yandicoogina and Yandi operations in Western Australia’s Pilbara region.

Under two non-binding memoranda of understanding, the companies will examine potential collaboration on the development of Rio Tinto’s Wunbye deposit and the supply of BHP’s Yandi Lower Channel Deposit ore to Rio Tinto for processing at its existing wet plants under agreed commercial terms. The proposed arrangements build on a 2023 agreement that enabled the joint mining of the Mungadoo Pillar, allowing access to ore located along a shared tenure boundary.

The companies said the collaboration aims to better utilise existing infrastructure, extend the life of the operations, and support employment and local communities in Western Australia. Rio Tinto and BHP will progress a conceptual study followed by an order-of-magnitude study. Subject to regulatory, joint venture, and Traditional Owner approvals, and a final investment decision, first ore from both deposits is expected early next decade.