China's Ministry of Commerce (MOC) has launched an anti-monopoly investigation into the joint venture scheme of Australian iron ore miners Rio Tinto and BHP Billiton for the combination of their Western Australian assets, according to an insider at the China Iron and Steel Association (CISA). The MOC has not yet officially confirmed the launch of the investigation in question.
At the beginning of the current year, Rio Tinto and BHP Billiton submitted an application for their joint venture program. In its investigation, the MOC will seek to determine whether the program would cause any injury to the competition environment in the market.
As per Chinese anti-monopoly law, any business will become subject to the law in question when its sale volume exceeds a certain level. Iron ore supplies of the two mining companies in question meet 36 percent of the world's total iron ore demand. In addition, China is a major importer of iron ore. The two miners are reported to be actively cooperating with the MOC.