MW One of the Japanese trading houses that Buffett owns agrees a $5.3 billion investment in an untapped iron-ore project
By Steve Goldstein
One of the Japanese trading houses that Warren Buffett's Berkshire Hathaway holds has agreed to invest $5.3 billion in an untapped iron-ore project in Western Australia.
Mitsui (JP:8031) said it's paying $3.3 billion to VOC Group and $2 billion to AMB Holdings to get a 40% interest in the Rhodes Ridge iron-ore project.
Rhodes Ridge is located in the Pilbara region of Western Australia and is billed as one of the world's largest undeveloped iron-ore deposits. Production at the Rio Tinto-led $(RIO)$ (UK:RIO) project is due to start in 2030.
Mitsui already has an equity share of iron ore production of 61 million tons, and the project over time is expected to add 40 million tons.
Mitsui notes it's also an investor in a Rio Tinto-led venture called the Robe River iron ore project, which is nearby. Rio Tinto, which said it welcomed the investment, said the new development would use its rail, port and power infrastructure.
Mitsui is one of five trading houses that Berkshire Hathaway $(BRK.B)$ holds. According to FactSet, Berkshire Hathaway has an 8% stake in Mitsui.
-Steve Goldstein
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(END) Dow Jones Newswires
February 19, 2025 05:53 ET (10:53 GMT)
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