The companies said on Wednesday (Jan 14) that mining and extraction will be carried out at BHP’s Yandi and Rio Tinto’s Yandicoogina operations, which are about 80 kilometers apart.
“This is a clear example of productivity in action – unlocking new opportunities by making the most of our existing resources,” said Tim Day, president of iron ore for BHP Western Australia.
“Together we will extend the life of these operations, create additional value and further support jobs and local communities in Western Australia,” said Rio Tinto iron ore CEO Matthew Holcz.
Under the agreement, BHP will also supply wet iron ore from the Yandi Lower Channel deposit to Rio Tinto for processing at existing wet plants, subject to agreed commercial terms.
BHP’s Yandi is part of an 85/15 joint venture between BHP, Mitsui & Co. (TSE:8031,OTCPL:MITSF) and Itochu (TSE:8001,OTCPL:ITOCF). In 2023, the country produced 257 million tons of iron ore says BHP is “enough to make steel for approximately 2,980 Sydney Harbor Bridges.”
The companies will also collaborate on the development of Rio Tinto’s Wunbye deposit, located at the Yandicoogina operation. Yandicoogina is one of Rio Tinto’s most productive iron ore mines and was one of the first to operate a fleet of autonomous trucks and drills, according to the company.
“The operation produces Hamersley Iron Yandi fines – a low impurity product that produces a high iron content sinter – which is used by customers in East Asia and Southern China in their steelmaking process,” Rio Tinto said. mentions on its website.
For this partnership, BHP and Rio Tinto will conduct a conceptual study, followed by an order-of-magnitude study.
Any implementation will require regulatory and joint venture approvals, along with traditional owner involvement. Depending on a final investment decision, the first ore from both deposits is expected early next decade.
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Securities Disclosure: I, Gabrielle de la Cruz, have no direct investment interest in any company mentioned in this article.
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