Xin Lang Cai Jing·2026-01-16 13:54Core Viewpoint - Rio Tinto and BHP have agreed to jointly develop iron ore resources at the boundary of their mining rights in the Pilbara region of Western Australia, aiming to extract up to 200 million tons of iron ore [1][2]. Group 1: Joint Development Agreement - The companies will collaborate on the Yandicoogina and Yandi iron ore operations, including the development of Rio Tinto's Wunbye deposit [1]. - BHP will supply "wet ore" from its Yandi Lower Channel segment to be processed at Rio Tinto's facilities, enhancing operational efficiency [1][2]. Group 2: Strategic Rationale - The collaboration is seen as a way to maximize the use of existing infrastructure, extend the lifespan of their mines, and recover previously stranded ore [2]. - Analysts note that declining iron ore grades in Western Australia and the recent production start of the Simandou iron ore project in Guinea are influencing this partnership [3]. Group 3: Future Outlook - Mining operations are expected to commence in the early 2030s, pending final investment decisions and necessary approvals from regulators and Indigenous groups [2].