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.