Japan-based Mitsui & Co., Ltd. has announced that it has acquired a 40 percent stake in the Rhodes Ridge iron ore project in Australia for $5.34 billion in total.
Accordingly, the company has reached a definitive agreement with VOC Group Limited to purchase the latter’s 25 percent stake in the project for $3.34 billion, which is expected to be completed in March this year, while it has signed a heads of agreement with AMB Holdings Pty Ltd to acquire the latter’s 15 percent stake for $2 billion. The completion of the acquisition from AMB Holdings is subject to the fulfillment of conditions, including obtaining the necessary approvals from relevant authorities.
Considered to be one of the world’s largest untapped iron ore deposits with a capacity of 6.8 billion mt and operated by Australia-based miner Rio Tinto, the Rhodes Ridge project is located in the Pilbara region of Western Australia. Production is expected to begin by 2030. Following the acquisition of a 40 percent stake in the project, Mitsui’s initial share of production from the project will amount to about 16 million mt, with production expected to exceed 40 million mt after further expansion.