By Kosaku Narioka

Mitsui & Co. said it would acquire a 40% interest in the Rhodes Ridge iron ore project in Australia for $5.34 billion, as part of its efforts to secure a stable supply of key resources for Asian economies.

The Japanese trading house said Wednesday that the Rhodes Ridge project will be developed and operated by Rio Tinto, which holds a 50% interest.

Under the agreements, Mitsui plans to acquire a 25% stake from VOC Group and another 15% from AMB Holdings, both of which are joint-venture partners of Rio Tinto in Australia. AMB will retain a 10% interest.

The Japanese company noted that Rhodes Ridge is one of the world's largest undeveloped iron ore deposits, located in Western Australia, where Mitsui has been involved in the iron ore business since the 1960s.

Production is expected to begin by 2030, with Mitsui's annual share of production initially projected to be about 16 million tons, rising to over 40 million tons in the future. This compares with Mitsui's annual share of about 61 million tons for the fiscal year ended March 2024.

Mitsui also stated that iron ore produced at Rhodes Ridge is expected to be blended with ore sold by Rio Tinto and exported to countries in Asia, including Japan.

Given strong expected growth in crude steel production, especially in India and Southeast Asia, Mitsui anticipates long-term demand for iron ore will remain robust, as it is essential for producing high-quality steel.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

February 19, 2025 05:23 ET (10:23 GMT)

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