“Major Mining Tie-Up” Rio Tinto and BHP Join Forces to Extract 200M Tonnes of Pilbara Iron Ore

Rio Tinto (RIO) and BHP (BHP) have agreed to extract up to 200 million tonnes of iron ore in Western Australia’s Pilbara region by jointly developing neighboring deposits and sharing infrastructure. This marks one of the biggest collaborations between the two mining giants in years.

The companies signed two non‑binding memoranda of understanding (MOUs) to explore joint development opportunities across their neighboring Yandicoogina (Rio) and Yandi (BHP) sites.

The collaboration focuses on two key areas. These include developing Rio Tinto’s Wunbye deposit, which remains an untapped resource with long-term potential, and supplying ore from BHP’s Yandi Lower Channel Deposit for processing Rio Tinto’s existing wet plants under agreed commercial terms.

Here’s Why the Collaboration Matters 

Importantly, the Pilbara is one of the world’s key iron ore regions, supplying huge volumes to steelmakers, especially in Asia. As ore grades decline and costs rise, executives from both miners noted that the initiative aims to boost productivity without heavy new capital spending.

Rio Tinto’s iron ore chief, Matthew Holcz, said both companies can “better leverage existing infrastructure to unlock additional production with minimal capital requirements.” At the same time, BHP’s WA Iron Ore president Tim Day called it “a clear example of productivity in action,” highlighting the value created by sharing expertise and infrastructure.

Moreover, both companies said the partnership builds on a 2023 agreement that allowed them to start mining ore along a shared boundary that was previously off-limits.

Who Is Better, BHP or Rio?

Let’s use the TipRanks Stock Comparison tool to see how Wall Street analysts are rating these mining stocks and which one they believe has the strongest upside, as shown in the chart below.