ACCC green lights BHP-JFE joint venture

ACCC green lights BHP-JFE joint venture

The Australian Competition and Consumer Commission (ACCC) reportedly gave a draft approval for BHP Billiton's planned joint venture with Japanese JFE Steel Corporation. In line with the joint venture deal, Western 4 (W-4) iron ore deposit at BHP Billiton's Yandi mine in Western Australia will be developed. Japanese partner JFE Steel will hold a 20 percent stake in the W-4 deposit. BHP Billiton will hold a 68 percent stake in W-4, and the remaining 12 percent will be hold by the existing joint venture partners Itochu Minerals & Energy of Australia and Mitsui Iron Ore Corporation. Itochu will have a 6.4 percent stake, while Mitsui will have a 5.6 percent stake. Under the partnership deal, 16 million tons of iron ore will be shipped to JFE Steel per annum for at least 11 years.