Mining giant BHP will scale back its Yandi iron ore mine after extracting years of extra life out of the 34-year-old deposit.
Mining giant BHP will scale back its Yandi iron ore mine after extracting years of extra life out of the 34-year-old deposit.
BHP on Tuesday confirmed it would reduce production at the ageing mine northwest of Newman.
About 600 staff and 150 contractors are employed at the site and BHP is currently assessing options for its workforce there, with an eye to redeployment where possible.
A BHP spokesperson said production at Yandi had ramped down in recent years.
“We now need to adjust the mine plan to meet current and future operational requirements,” they said.
“Ensuring our teams are safe, informed and supported throughout the process is our number one priority.”
Yandi was initially due to close down in 2021 but BHP has so far extended its operations for five more years.
That has been achieved by a technological breakthrough using hyperspectral imaging which helped to identify material in the mine which could be easily processed.
Yandi was well regarded due to its low impurity levels but has been running significantly below its 80Mtpa capacity since 2021.
The $4.9 billion South Flank mine was initially built to replace Yandi but has instead ramped up alongside Yandi’s sunset years.
A Wood Mackenzie report from May this year noted Yandi would likely be shut down in 2026.
BHP owns 85 per cent of Yandi, with Japanese firms Itochu and Mitsui the other two partners.
Both will become partners in the proposed Ministers North mine which sits between Yandi and Mining Area C to the south.
Yandi was the second mine in WA to have one billion tonnes of iron ore extracted from it during its lifetime, according to BHP.
The journalist is a BHP shareholder
