Mitsui Acquires 40% Stake in Rio Tinto’s Rhodes Ridge Iron Ore Project for $5.3 Billion

Mitsui Expands Its Iron Ore Holdings with a Strategic Acquisition

Mitsui & Co. has agreed to purchase a 40% interest in Rio Tinto’s Rhodes Ridge iron ore project, located in Western Australia. This Mitsui acquisition deal is valued at $5.34 billion and signals Mitsui’s continued growth in the global mining sector. The Japanese company will acquire a 25% share from VOC Group and a further 15% from AMB.

Financial Breakdown of the Deal

Mitsui will pay $3.34 billion for VOC’s 25% stake, including stamp duty. The company will then acquire an additional 15% from AMB for $2 billion, also factoring in stamp duty. These deals remain contingent on due diligence and approval from relevant authorities. Once finalized, Mitsui will hold a 40% interest in the Rhodes Ridge joint venture, with Rio Tinto retaining 50% and AMB holding the remaining 10%.

Rhodes Ridge: A Major Iron Ore Resource

The Rhodes Ridge project is one of the world’s largest undeveloped iron ore deposits. The site holds an estimated 6.8 billion tonnes of mineral resources. Production is set to begin in 2030, and Mitsui’s share of annual production is expected to start at 16 million tonnes. As the project expands, Mitsui’s share could exceed 40 million tonnes per year.

Synergies and Market Integration with Rio Tinto

Rio Tinto will oversee the project’s development and operations. Iron ore produced at Rhodes Ridge will be integrated into Rio Tinto’s export system, serving key markets in Asia, including Japan. The proximity of Rhodes Ridge to the Robe River iron ore project, where Mitsui is already a partner, presents an opportunity for operational synergies. Shared infrastructure, including rail and port facilities, will drive greater efficiency in logistics and ore blending.

Mitsui’s Strategic Vision for the Future

Mitsui’s acquisition aligns with the company’s medium-term management plan. The plan focuses on securing stable supplies of essential resources for industrial purposes. The deal marks a key milestone in Mitsui’s strategy to expand its footprint in the global iron ore market. The completion of this deal is subject to regulatory approvals and is expected to finalize by March 2026 for the VOC transaction.