BHP WA Iron Ore Asset president Tim Day said the collaboration was expected to benefit both companies.
“This is a clear example of productivity in action – unlocking new opportunities by making the most of our existing resources,” he said.
“By sharing our expertise and infrastructure we will create new value and deliver benefit to our people, partners, customers and communities.”
Yandicoogina sits about 95km north-west of Newman in the East Pilbara area and was among the first sites in the state to operate a fleet of autonomous haul trucks and drills.
In 2024, Rio’s Pilbara operations, including tonnes mined at Yandicoona, produced 328.0 million tonnes of iron ore with shipments of 328.6 million tonnes, a slight reduction on its 2023 figures.
According to the company, productivity improvements of 10 million tonnes did not fully offset depletion, predominantly at Yandicoogina and Paraburdoo.
BHP’s Yandi iron ore mine sits around 180km north-west of Newman and was officially opened in 1991. According to the company, in 2017 the mine became the second WA-based iron ore mine to produce a billion tonnes of ore.
BHP’s WA iron ore chief Tim Day.Credit: Tony McDonough
The latest agreement is not the first time the two mining giants have decided to work together. In 2024, the companies announced they would form the NeoSmelt consortium to develop Australia’s largest ironmaking electric smelting furnace, with electric smelting the key to producing green iron and steel.
The consortium, founded by BlueScope, BHP and Rio Tinto, more recently welcomed two new equity participants – Woodside Energy and Mitsui Iron Ore Development – with the five participants taking equal equity stakes in the joint venture.
The NeoSmelt pilot plant is intended to test and optimise production of iron from the electric smelting furnace (ESF), a type of furnace being developed by leading steel producers and technology companies targeting lower-carbon emission-intensity steel.
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