850 jobs on the line as Yandi scales back

BHP (ASX: BHP) will be winding down operations at its Yandi iron ore mine in the Pilbara region of WA as the ore body nears depletion.

The company has begun informing its workforce, about 650 direct employees and 200 contractors, that operations will be scaled back over the next year before ceasing altogether.

BHP first proposed scaling down operations at Yandi in 2017 but strong demand for iron ore led to multiple life-of-mine extensions.

The Western Mineworkers’ Alliance (WMWA), representing more than 100 members at Yandi, says the announcement comes as a major blow to workers, their families, and the surrounding communities that have long supported the site.

“This is a deeply unsettling time for hundreds of hardworking people who’ve given years of service to BHP,” WMWA spokesperson Brad Gandy said.

“We understand that mine closures are sometimes unavoidable, but how BHP manages this process will be the true test of their commitment to their workforce.”

WMWA has confirmed it will meet with BHP in the coming weeks to ensure that workers’ concerns are central to all discussions about the site’s wind down.

“We’ll be demanding that every affected member is given a genuine choice — whether that’s redeployment within BHP or a fair and decent redundancy package,” Mr Gandy said.

“Workers deserve clarity, respect and the ability to plan their futures. Our priority is making sure no one is left behind.”

The union has also called on BHP to engage early with local communities and governments to mitigate the social and economic impacts of the closure.

“This mine has supported hundreds of families and regional businesses for decades,” Mr Gandy said.

“It’s critical that BHP works with all stakeholders to ensure the transition is handled responsibly and humanely.”

The ramp up of production at BHP’s South Flank iron ore mine, located about 13km from Yandi, continues to substitute the declining output.

BHP confirmed a guidance for iron ore production between 284mt and 296mt for FY26, a significant increase from the 263mt the company produced in FY25.