On Wednesday, Rio Tinto Plc (NYSE:RIO) announced it collaborated with BHP Group Limited (NYSE:BHP) for extracting up to 200 million tonnes of iron ore from their neighboring Yandicoogina and Yandi operations in the Pilbara.
Details
As per two non-binding memorandum of understanding (MOUs), the companies will explore joint development of Rio Tinto's Wunbye deposit and arrangements for BHP to supply ore from its Yandi Lower Channel Deposit to Rio Tinto for processing at its existing wet plants under agreed commercial terms.
These initiatives build on a 2023 agreement between Rio Tinto and BHP to mine the Mungadoo Pillar. The deal enabled extraction from previously inaccessible ore along their shared tenure boundary.
Notably, Rio Tinto and BHP will conduct a conceptual and order-of-magnitude study, aiming to produce first ore from both deposits early next decade, subject to approvals and Traditional Owner consultation.
Rio Tinto Iron Ore Chief Executive Matthew Holcz said, "By working smarter, we can better leverage existing infrastructure to unlock additional production with minimal capital requirements."
"Together we will extend the life of these operations, create additional value, and further support Western Australian jobs and local communities."
Potential Glencore Merger
Heavyweight miners Glencore (OTC:GLCNF) and Rio Tinto made headlines last week after confirming early-stage talks about the mega merger. The $200 billion deal, which has eluded the market for nearly two decades, now looks closer than ever.
Price Action: Rio Tinto shares were up 0.43% at $86.25 and BHP Group shares were down 0.03% at $66.00 during premarket trading on Thursday, according to Benzinga Pro data.
Photo by BJP7images via Shutterstock
