Iron ore giants Rio Tinto (ASX:RIO) and BHP (ASX:BHP) have signed two non-binding memoranda of understanding to jointly develop neighboring Pilbara iron ore projects, targeting up to 200 million tonnes of ore from Rio Tinto's Yandicoogina and BHP's Yandi mines.
The agreements cover collaboration on Rio Tinto's Wunbye deposit and the supply of ore from BHP's Yandi Lower Channel deposit to Rio Tinto for processing at its existing wet plants under agreed commercial terms.
The companies will first conduct a conceptual study followed by an order-of-magnitude study, with first ore expected early next decade, pending final investment decisions.
This follows a 2023 agreement between Rio Tinto and BHP to mine the Mungadoo Pillar, unlocking previously inaccessible iron ore along their shared tenure boundary.
"By working smarter, we can better leverage existing infrastructure to unlock additional production with minimal capital requirements," said Matthew Holcz, Rio Tinto Iron Ore CEO.
"Together we will extend the life of these operations, create additional value, and further support Western Australian jobs and local communities."
Tim Day, BHP WA Iron Ore Asset President, added, "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 benefits to our people, partners, customers, and communities."