The Japan Fair Trade Commission has told major Australian mining companies Rio Tinto and BHP Billiton that their planned iron ore production joint venture could restrict competition.

Mr Takahide Matsuyama secretary general of JFTC said that the Japanese antimonopoly watchdog has asked the two Australian firms to submit any rebuttals or opinions on the JFTC view and will make a final decision on the matter after examining the response.

Japanese steel industry officials said the joint venture between the major iron ore suppliers could lead iron ore prices higher substantially, while Australian newspapers last Thursday reported the joint venture plan could be canceled in the face of examinations by regulators, including the JFTC.

(Sourced from Kyodo News)