Rio Tinto and BHP Collaborate on Pilbara Iron Ore Mining
Perth, 15 January 2026 – Mining giants Rio Tinto and BHP have signed non-binding memoranda of understanding to explore joint development of iron ore deposits in Western Australia’s Pilbara region, potentially unlocking up to 200 million tonnes of production.
Agreement Details
The collaboration focuses on Rio Tinto’s Wunbye deposit and BHP’s Yandi Lower Channel Deposit. BHP will supply ore from its deposit to Rio Tinto for processing at existing wet plants under agreed commercial terms. This builds on a 2023 agreement to mine the Mungadoo Pillar, allowing access to previously inaccessible ore. Conceptual and order-of-magnitude studies are underway, with first ore anticipated early next decade, subject to regulatory approvals and Traditional Owner engagement.
Key Benefits and Statements
Rio Tinto Iron Ore Chief Executive Matthew Holcz stated: “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.” BHP WA Iron Ore Asset President Tim Day 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 benefit to our people, partners, customers and communities.”
Key Facts / Stats
| Aspect | Details |
|---|---|
| Potential Production | Up to 200 million tonnes of iron ore |
| Locations | Yandicoogina and Yandi operations, Pilbara region |
| Timeline | First ore early next decade |
| Previous Agreement | 2023 Mungadoo Pillar mining |
Frequently Asked Questions
What is the main focus of the Rio Tinto and BHP collaboration?
The collaboration aims to jointly develop iron ore deposits in the Pilbara, including mining Rio Tinto’s Wunbye deposit and processing BHP’s Yandi Lower Channel Deposit ore at Rio Tinto’s facilities, potentially increasing production by up to 200 million tonnes.
When is production expected to start?
Subject to final investment decisions, first ore is anticipated early next decade.
What are the benefits for Western Australia?
The agreement extends mine life, creates value, and supports jobs and communities in the region.