Novum will take used earth moving tyres from all seven BHP Mitsubishi Alliance (BMA) and BHP Mitsui Coal (BMC) sites in Queensland's Bowen Basin for recycling.
It will convert the tyres into heavy and light oils, carbon black, syngas and steel at a processing plant which is being built in Nebo within the Isaac region, creating 30 new jobs.
The company is aiming to process 19,000 tonnes of rubber per annum to produce about nine million litres of fuel oil, 4,500t of recycled carbon black and 2,500t of waste steel, according to Novum managing director Rowan Kendall.
The initial supply rate to Novum will be 2,000 tyres per year, according to BMC asset president Elsabe Muller.
"We are constantly looking for ways to increase the sustainability of our operations, reduce emissions and contribute to regional communities, and this new BHP-led initiative does just that," BMA asset president James Palmer noted.
"New technology means rather than storing old tyres, which weigh around 4.9 tonnes each, they can be now be recycled and turned into new products. This helps us create a circular economy in the region by re-purposing waste locally and creating activity in the region."