Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Itochu, Mitsui to Invest $1.5 Billion in BHP Iron Ore

Don't Miss Out —
Follow us on:

June 21 (Bloomberg) -- Itochu Corp. and Mitsui & Co. agreed to invest $1.5 billion in BHP Billiton Ltd.’s Jimblebar mining unit, extending the Japanese traders’ interests in the company’s Western Australian iron-ore operations.

Itochu will invest about $800 million and Mitsui about $700 million in equity and loans, Melbourne-based BHP said yesterday in a statement. The deal is subject to approval from the Australian Foreign Investment Review Board and is expected to be completed in the third quarter.

A new mine under construction at Jimblebar will have an initial production capacity of 35 million metric tons a year, bringing BHP’s West Australian iron-ore operations’ capacity to 220 million tons, according to the statement. Itochu and Mitsui have a combined 15 percent stake in the operations.

BHP, the world’s biggest mining company, fell 0.6 percent to A$31.97 as of 12:46 p.m. in Sydney trading. The benchmark S&P/ASX 200 index fell 0.4 percent.

The Melbourne-based producer, which previously owned 100 percent of the Jimblebar operation, said in 2011 it will spend $3.3 billion to develop the mine and rail links.

Itochu and Mitsui’s investment includes a contribution to the development costs, Itochu said in a statement, without specifying a figure.

To contact the reporter on this story: Simon Casey in New York at scasey4@bloomberg.net

To contact the editor responsible for this story: Simon Casey at scasey4@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.