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.