It is reported that BHP Billiton Limited’s proposed merger with Rio Tinto Limited would boost Australia's annual iron ore exports by 70 million tonnes from 2012 and cost USD 4.4 billion in fees.

As per report, BHP Billiton Limited submitted to US regulators of USD 800 million in fees associated with a USD 55 billion loan facility, which was established to refinance debt from Rio's Alcan acquisitions and fund a proposed buyback of up to USD 3.7 billion shares. The documents showed Chinalco's 12% holding in Rio Tinto Plc may force BHP to sell its own assets rather than Rio's assets.

BHP said that it would save around USD 3.7 billion annually by merging its operations with Rio. It added that "Compliance with any conditions and obligations imposed in connection with regulatory approvals could be affected, with any required divestments having to be made form BHP Billiton's portfolio rather than Rio Tinto's if consent of the Rio Tinto minority shareholders is required and cannot be obtained."

The merged group would produce about 710 million tonnes of iron ore annually from 2015, which is an 11% increase compared to the two companies' separate plans that would generate 640 million tonnes each year.

It may be noted that the bid has been cleared by US and Australian competition regulators but still needs approval from EU, Canadian and South African watchdogs.