Australian iron ore producer BHP and producer Rio Tinto will partner on mine and ore processing projects to boost their joint production capacity by up to 200mn t/yr under a pair of initial agreements.
BHP and Rio Tinto could collaborate to mine ore at Rio Tinto's Wunbye deposit and process ore from BHP's Yandi Lower Channel deposit, according to the non-binding deals signed on 15 January. Both deposits are in Western Australia's Pilbara region.
The partnership is subject to final investment decisions from both companies, regulatory approvals and Traditional Owner engagement, the companies said. They expect to achieve first ore from the two deposits in the early 2030s, they added.
The deal will extend the life of Rio Tinto's Yandicoogina project — which houses Wunbye — and BHP's Yandi project, create additional value and support local jobs and communities, Rio Tinto's iron ore chief executive officer Matthew Holcz said.
BHP produced 3.5mn t of saleable ore at Yandi in July–September 2025, down by 21pc on the year. Its initial deals with Rio Tinto have no impact on existing plans to cut production at the mining hub, a BHP spokesperson confirmed to Argus.
Rio Tinto sold 10.8mn t of Yangicoogina Fines in July–September 2025, down by 8.7pc on the year.
The company's deals with BHP come after it expanded multiple joint venture investments in 2025. It partnered with Australian producer Hancock Prospecting to invest $1.6bn into their Hope Downs joint venture in Western Australia.
It also plans to develop new deposits at its Robe Valley joint venture and achieve first ore at its Rhodes Ridge joint venture project by 2030.
Rio Tinto may soon form another major partnership. The company is in early discussions with global producer Glencore over a partial or complete merger.
