Rio Tinto and BHP Collaborate to Extract 200 Million Tonnes of Iron Ore
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Businesswire
- Collaborative Extraction Plan: Rio Tinto and BHP have signed non-binding MOUs to jointly extract up to 200 million tonnes of iron ore at their Yandicoogina and Yandi operations in Pilbara, aiming to enhance production efficiency through shared infrastructure and expertise.
- Infrastructure Utilization: Rio Tinto CEO Matthew Holcz stated that by working smarter, they can better leverage existing infrastructure to unlock additional production with minimal capital requirements, thereby extending the life of the operations and creating more value.
- Productivity Enhancement: BHP WA Iron Ore Asset President Tim Day emphasized that this collaboration exemplifies productivity in action, as maximizing the use of existing resources will create new value and benefits for employees, partners, and communities.
- Future Outlook: The companies will progress a conceptual study followed by an order of magnitude study, with first ore extraction anticipated early next decade, subject to final investment decisions and regulatory approvals.
Analyst Views on RIO
Wall Street analysts forecast RIO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for RIO is 88.33 USD with a low forecast of 66.50 USD and a high forecast of 129.50 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
1 Buy
2 Hold
0 Sell
Moderate Buy
Current: 83.590
Low
66.50
Averages
88.33
High
129.50
Current: 83.590
Low
66.50
Averages
88.33
High
129.50
About RIO
Rio Tinto plc is a United Kingdom-based mining and materials company. It operates in over 35 countries, and its portfolio includes iron ore, copper, aluminum and a range of other minerals and materials. Its segments include Iron Ore, Aluminum, Copper, and Minerals. The Iron Ore segment includes iron ore mining and salt and gypsum production in Western Australia. Its iron ore operations in Pilbara comprise an integrated network of over 18 iron ore mines and four independent port terminals. The Aluminum segment includes bauxite mining, alumina refining, and aluminum smelting and recycling. The Copper segment includes mining and refining of copper, gold, silver, molybdenum, other by-products and licensing of extraction technologies. The Minerals segment includes mining and processing of borates, diamonds, iron concentrate and pellets from the Iron Ore Company of Canada, lithium and titanium dioxide feedstock.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
