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| Mitsui & Co |
Major Iron Ore Expansion in Western Australia
Rio Tinto has confirmed that Mitsui & Co. has entered agreements to acquire a 40 per cent interest in the Rhodes Ridge joint venture (RRJV), further strengthening its partnership with the global mining giant.
Mitsui will acquire a 25 per cent interest from VOC Group and has signed a heads of agreement to acquire the additional 15 per cent stake from AMB Holdings. This represents Mitsui’s largest-ever single investment.
“Rio Tinto welcomes Mitsui & Co. to Rhodes Ridge and looks forward to progressing the project,” Rio Tinto stated. “Rio Tinto’s interest in the RRJV and the terms of the joint venture arrangements are unchanged.”
Long-Standing Partnership and Future Prospects
Mitsui and Rio Tinto have been partners for decades, notably collaborating on the Robe River joint venture near Pannawonica since 1972. A pre-feasibility study for Rhodes Ridge is expected to be completed later this year, with a feasibility study to follow. The mine’s initial capacity is planned at 40 million tonnes per annum (Mtpa) of iron ore production, with potential expansion to 100Mtpa.
The development will leverage Rio Tinto’s existing rail, port, and power infrastructure, with first ore anticipated by 2030. Rhodes Ridge aims to optimize costs by utilizing established infrastructure between Rhodes Ridge and the Robe River project.
Significant Resource and Market Impact
Mined ore from Rhodes Ridge will be blended with other Rio Tinto ores and exported to Asian markets. According to Mitsui president and CEO Kenichi Hori, “Based on confirmed figures alone, the project has 6.8 billion tonnes of mineral resources, making it one of the largest undeveloped deposits in the world.”
“Rhodes Ridge is located in Western Australia, a region where we have been engaged in mining development since the 1960s, and where we hold the most expertise in relation to the iron ore business.”
Rio Tinto’s Financial Performance
In related news, Rio Tinto has announced its half-year results, revealing an 11 per cent decline in iron ore prices, leading to an underlying EBITDA of $23.3 billion—only a two per cent decrease from the prior period. Operating activities generated three per cent higher net cash of $15.6 billion, attributed to Rio Tinto’s strategic portfolio management and effective working capital management.