Rio Tinto, BHP sign MoU to extract 200m tonnes of iron ore
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The news: Iron ore giants Rio Tinto and BHP have signed two non-binding memoranda of understanding to work together on extracting up to 200 million tonnes of neighbouring Pilbara iron ore projects from Rio’s Yandicoogina and BHP’s Yandi.
The context: The MoUs relate to collaboration on the development of Rio Tinto’s Wunbye deposit and for BHP to supply its Yandi Lower Channel Deposit ore to Rio Tinto for processing at its existing wet plants under agreed commercial terms.
Under the agreements, the two companies will progress a conceptual study followed by an order of magnitude study, with first ore from both deposits anticipated early next decade, subject to final investment decisions.
Rio and BHP previously signed a 2023 agreement to mine the Mungadoo Pillar in the Pilbara, enabling previously inaccessible iron ore along a shared tenure boundary to be mined.
What they said: “By working smarter, we can better leverage existing infrastructure to unlock additional production with minimal capital requirements,” Rio Tinto iron ore chief executive Matthew Holcz.
“Together we will extend the life of these operations, create additional value, and further support Western Australian jobs and local communities," Holcz said.
BHP WA iron ore asset president Tim Day said: “This is a clear example of productivity in action - unlocking new opportunities by making the most of our existing resources.”
“By sharing our expertise and infrastructure we will create new value and deliver benefit to our people, partners, customers and communities," Day said.
The source: RIo Tinto and BHP media release
