Rio and BHP eye Pilbara iron ore deal
Rio and BHP eye Pilbara iron ore deal
Rio Tinto (ASX: RIO) and BHP (ASX: BHP) will work together to extract up to 200mt from their neighbouring Pilbara iron ore operations, Yandicoogina and Yandi.This follows BHP’s wind down of operations at the Yandi mine as the ore body nears depletion. In late October, BHP had begun informing its workforce that operations would be scaled back over the next year before ceasing all together.BHP first proposed scaling down operations at Yandi in 2017 but strong demand for iron ore led to multiple life-of-mine extensions.Under two non-binding agreements, Rio and BHP will assess a potential collaboration to develop Rio’s Wunbye deposit and for BHP to supply Yandi Lower Channel Deposit ore for processing at Rio’s existing wet plants.Rio Tinto iron ore chief executive Matthew Holcz says by working smarter, the companies 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 WA jobs and local communities,” he said.BHP WA iron ore asset president Tim Day says this is a clear example of productivity in action.“By sharing our expertise and infrastructure we will create new value and deliver benefit to our people, partners, customers and communities,” he said.Subject to a final investment decision, first ore from both deposits is anticipated early next decade.
