Mining rival titans BHP and Rio Tinto explore joining forces to produce WA iron ore together
Arch-rivals BHP and Rio Tinto are looking at mining hundreds of millions of tonnes of WA iron ore together, in what could mark the beginning of a cartel to curb China’s shakedown.
Rio and BHP have agreed to work together to extract up to 200 million tonnes of iron ore at their neighbouring Yandicoogina and Yandi iron ore operations in the Pilbara.
The West Australian in October revealed that BHP had decided to significantly scale back activity at Yandi, which employs about 720 people, as the 34-year-old operation progressively winds down.
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By continuing you agree to our Terms and Privacy Policy.Rio’s Yandicoogina is also an ageing mine.
Under two non-binding agreements, WA’s two biggest miners companies will explore the potential for co-developing a new deposit at Yandicoogina and for BHP to process ore from a future Yandi deposit at Rio’s existing wet plants.
Subject to a final investment decision, first ore from both deposits is anticipated early next decade.
“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 said.
“Together we will extend the life of these operations, create additional value, and further support Western Australian jobs and local communities.”
BHP WA iron ore asset president Tim Day said the potential collaboration was “a clear example of productivity in action”.
“By sharing our expertise and infrastructure we will create new value and deliver benefit to our people, partners, customers and communities,” Mr Day said.
