Japan’s Mitsui Targets 80 Million Tons Annual Offtake through New Deal
Japanese trading company Mitsui & Co. is investing $5.3 billion to acquire a 40% stake in the Rhodes Ridge Joint Venture (RRJV) in Western Australia. This major investment strengthens Mitsui’s long-term iron ore supply network and deepens its partnership with mining leader Rio Tinto.
The 40% acquisition comes from two separate stakeholders—VOC (25%) and AMB (15%). Once completed, Mitsui will become the second-largest stakeholder after Rio Tinto, which holds 50%. The transaction is set to close before March 31, 2026.
Mitsui plans to produce up to 40 million tons of iron ore per year during initial operations at Rhodes Ridge. In the future, production could expand to 100 million tons annually, positioning the site as a key global source of iron ore. Commercial operations are expected to begin by 2030, pending a final investment decision.
Mitsui Expands Iron Ore Reach across Australia
Mitsui’s initial annual offtake from Rhodes Ridge will be around 16 million tons, mostly targeting Asian markets, including Japan. Over time, Mitsui expects this volume to grow to 40 million tons per year.
Despite the global push toward decarbonization, Mitsui affirms that iron ore remains essential for producing high-grade steel, especially in growing markets like India and Southeast Asia. The company sees consistent demand for crude steel in these regions, further justifying the expansion.
In addition to Rhodes Ridge, Mitsui holds stakes in several other iron ore projects across Australia. These include partnerships with both BHP and Rio Tinto. In the Robe River Mining consortium, Mitsui teams up with Nippon Steel and Rio Tinto, securing an offtake of 20 million tons per year. Projects with BHP add another 19.9 million tons annually. In total, Mitsui’s long-term offtake in Australia is expected to reach 80 million tons per year.
Rhodes Ridge’s Legal Past and Strategic Future
Rhodes Ridge has a complex legal background. Over a decade ago, Western Australia’s Supreme Court ordered Gina Rinehart to hand over a 25% stake in the project to the Wright family, descendants of Peter Wright, co-founder of Hancock Prospecting. Since then, the Wright family, via VOC, has partnered with Rio Tinto in project development.
With the Rhodes Ridge deal, Mitsui reinforces its role as a critical player in the global metals market. The company’s growing footprint in Australia supports long-term steel demand and enhances supply chain security.
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