Australian miner
BHP Billiton has announced that it has extended its long-term joint venture relationship with Japanese companies ITOCHU Corporation (ITOCHU) and Mitsui & Co., Ltd. (Mitsui).
Under the terms of the agreement, ITOCHU and Mitsui will invest approximately US$800 million and US$700 million respectively, representing an eight percent and seven percent interest in the Jimblebar
mining hub in the Pilbara region, Western
Australia. The transaction is subject to Australian Foreign Investment Review Board approval and other customary conditions and is expected to be completed in the September quarter of the current year.
According to
BHP Billiton, the new Jimblebar mine will have an initial production capacity of 35 million mt per year with future expansion potential. Once fully operational, this will bring
BHP Billiton's Western
Australia Iron Ore's supply chain capacity to 220 million mt per year.
ITOCHU and Mitsui collectively hold a 15 percent interest in
BHP Billiton's Western
Australia Iron Ore current mine, rail and port infrastructure.