Mitsubishi Corp. to Join Australian Iron Ore Development

Mitsubishi Corporation announced on Monday the firm joins Australian $ 3 billion iron ore development project in Western Australia. The Australian mineral resource development subsidiary, Mitsubishi Development of Australia agreed with Murchison Metals of Australia to develop Murchison Metals’ Jack Hills iron ore deposit in middle of Western Australia and infrastructure including rail and port. They launch high grade iron ore operation with 26 million tonnes of annual output in 2011 to supply for rapid growing Asian market. Mitsubishi Development and Murchison Metals will establish 50/50 joint venture for the project. They develop infrastructure with support by Western Australia government after the exploration for the mine. Mitsubishi Development markets the ore as exclusive agent except for some customers. Mitsubishi Development will pay A$ 150 million after the definitive joint venture agreement to acquire 50% interests both in mining and infrastructure projects. The firm will pay additional payment for the interest based on agreed valuation after the feasibility study by end of 2008. Jack Hills contains deposits of high grade hematite ore with estimated 380 million tonnes of resources. The high quality ore enables to ship directly without processing and concentration promising the low cost operation. The project already started test running at annual 1.5 million tonnes of capacity and will expand the operation to 26 million tonnes in 2011. The project also builds around 420 kilometers rail from mine to port and Oakajee port facilities with berth for cape size carriers.