Mitsui & Co. has agreed to acquire a 40% interest in the Rio Tinto-operated Rhodes Ridge iron ore project in Western Australia for a total consideration of $5.34bn.
In this regard, the Japanese group has signed agreements to acquire stakes from Australia-based VOC Group and AMB.
As part of the deal, Mitsui has entered into a definitive sale and purchase agreement to acquire VOC’s entire 25% stake in the Rhodes Ridge joint venture (RRJV) for $3.34bn, including stamp duty.
Additionally, Mitsui has signed a heads of agreement with AMB to acquire a further 15% interest in the RRJV for $2bn, including stamp duty.
Mitsui plans to conduct due diligence and negotiations to finalise a definitive agreement. Following completion, Mitsui will hold a 40% stake in the project, while Rio Tinto will retain its 50% interest and AMB will hold the remaining 10%.
Located in the Pilbara region, the Rhodes Ridge project is one of the world’s largest undeveloped iron ore deposits, with mineral resources estimated at 6.8 billion tonnes.
The project is expected to commence production by 2030. At the initial production stage, Mitsui’s annual equity share is projected at approximately 16 million tonnes, with expectations to exceed 40 million tonnes as the project expands.
Rio Tinto will oversee the development and operation of the Rhodes Ridge iron ore project.
The iron ore produced at Rhodes Ridge will be integrated into Rio Tinto’s export operations, with shipments planned for Asian markets, including Japan.
The site is geographically close to the existing Robe River iron ore project, where Mitsui and Rio Tinto are joint partners. The companies anticipate synergies through shared infrastructure such as rail and port facilities, as well as ore blending.
Mitsui stated that the acquisition aligns with its medium-term management plan 2026, which prioritises industrial business solutions and the stable supply of essential resources.
A pre-feasibility study for the development of Rhodes Ridge is expected to be completed within 2025, followed by a feasibility study. Production is slated to commence by 2030, leveraging Rio Tinto’s existing infrastructure.
Both transactions are subject to conditions precedent, including obtaining the necessary approvals from relevant authorities.
Mitsui’s agreement with VOC is expected to be completed by the end of the fiscal year ending March 2026.
