August 22, 2008

Japanese steel majors to expand Robe River iron ore JV

Mitsui & Co Ltd, Nippon Steel Corporation and Sumitomo Metal Industries Ltd announced that they decided to develop Mesa A Warramboo mine, which is jointly operated with Rio Tinto group in the Pilbara region of Western Australia.

Total high grade reserves across the Mesa A Warramboo deposits are estimated at approximately 250 million tonnes. The mine will have a full scale capacity of 25 million tonnes annually and will start production in 2010. It will sustain production of Robe Valley ore at 32 million tonnes annually, with a total mine life of 11 years. A 49 kilometer rail extension will connect the new mine to the existing rail network.

The project capital cost is estimated at approximately USD 900 million, which will be funded on pro rata basis among JV participants
1. Rio Tinto - 53%
2.Mitsui - 33%
3. Nippon Steel - 10.5%
4. Sumitomo Metals - 3.5%

Robe River JV was established in 1970and commenced shipment of iron ore from Robe River in 1972. Rio Tinto participated in JV in 2000 after TOB of North. It commenced shipment of iron ore from West Angelas in 2002. 2. Actual production of iron ore of Robe River JV is as under