What did BHP (ASX:BHP) announce regarding its Pilbara operations?

BHP has signed a non-binding memorandum of understanding (MoU) with Yindjibarndi Energy Corporation.

How does BHP’s deal compare to recent moves by Rio Tinto (ASX:RIO)?

BHP’s non-binding agreement follows a more advanced, binding move by Rio Tinto earlier this month. Rio Tinto secured a landmark 30-year power purchase agreement with YEC for the Jinbi solar project on Yindjibarndi land.

What are the key ESG and operational risks for BHP (ASX:BHP) in this region?

The primary risk is failing to secure long-term, stable green power, which could threaten BHP’s operational decarbonisation targets and attract investor backlash.

Why are Pilbara miners suddenly rushing to partner with Traditional Owners like the Yindjibarndi?

A recent Federal Court ruling mandated that Fortescue (ASX:FMG) must pay the Yindjibarndi people $150.1 million in compensation for mining on native title land without an agreement.

What is the medium-term investment thesis for BHP (ASX:BHP) after this news?

This move strengthens BHP's long-term investment thesis by mapping out a practical pathway to lower its Scope 1 and 2 emissions in iron ore production.

What are the main bull and bear points for BHP shareholders regarding this partnership?

The bull case is that partnering with YEC secures local knowledge, land access, and scalable renewables to future-proof BHP's key iron ore network against rising carbon costs.

Image for illustrative purposes only. Not a real photo.

BHP partners with Yindjibarndi to decarbonise Pilbara

Q: Who is Yindjibarndi Energy Corporation (YEC) and why are they important?

YEC is a clean energy joint venture between the Yindjibarndi Aboriginal Corporation and international renewable energy developer ACEN.

Written by Liezl GambePublished May. 25 2026Last Updated May. 25 2026

Mining giant BHP (ASX:BHP) has entered a partnership with Yindjibarndi Energy to accelerate the decarbonisation of its iron ore operations in Western Australia's Pilbara region.

The two companies have signed a non-binding memorandum of understanding to explore large-scale renewable energy solutions, focusing on power generation, electricity transmission, and critical enabling infrastructure.

BHP Vice-President of WA Nickel and Operational Decarbonisation, Daniel Heal, highlighted the collaboration as a vital step forward, stating that partnering with YEC allows the company to combine local knowledge with technical capability to deliver practical, on-the-ground outcomes.

YEC CEO Craig Ricato echoed the sentiment, emphasising the corporation’s commitment to building technically robust and commercially viable energy security for major industrial customers in the region.

YEC—a joint venture between the Yindjibarndi Aboriginal Corporation and international green energy developer ACEN—is rapidly becoming a major player in the Pilbara's transition to clean energy.

The announcement follows hot on the heels of a landmark 30-year power purchase agreement signed earlier this month between YEC and Rio Tinto (ASX:RIO) for the Jinbi solar project, which spans the 13,000-square-kilometre Yindjibarndi Native Title area.

This flurry of renewable agreements also comes against a backdrop of ongoing legal friction in the region.

The Federal Court recently ruled that iron ore rival Fortescue (ASX:FMG) owes the Yindjibarndi people $150.1 million in compensation for mining on their native title land without an agreement, underscoring the shifting dynamics and growing influence of Traditional Owners in the Pilbara's industrial landscape.