Japan's second-biggest trading house Mitsui & Co., Ltd. (Mitsui) and the country's leading steelmakers Nippon Steel Corporation (Nippon Steel) and Sumitomo Metal Industries, Ltd. (Sumitomo Metals) have announced their decision to develop the Mesa A/Warramboo mine in the Pilbara region of Western Australia, as part of their Robe River JV with Rio Tinto Group (Rio Tinto).
The Mesa A/Warramboo mine is estimated to have approximately 250 million mt of high-grade iron ore reserves. The mine will have an annual output capacity of 25 million mt, with production planned to start in 2010. The total mine life of Mesa A is expected to be 11 years. With this addition, the total production of Robe Valley ore will be maintained at 32 million mt per annum. A 49-km rail extension will connect the new mine to Rio Tinto's existing rail network.
The cost of the project is estimated at about $900 million, which is to be funded on a pro-rata basis among the JV participants as follows: Rio Tinto - 53 percent; Mitsui - 33 percent; Nippon Steel - 10.5 percent and Sumitomo Metals - 3.5 percent.