In a joint statement mining giants BHP Billiton Ltd
(ASX:BHP) and Rio Tinto Ltd
(ASX:RIO) say they have decided not to proceed with the joint venture marketing activity related to their iron ore production joint venture in Western Australia.
Under the terms of the joint venture agreement up to 15 per cent of the production was proposed to be sold by the joint venture, independent of Rio Tinto and BHP Billiton.
Rio and BHP have decided that all production from the proposed joint venture will be marketed separately by the two miners.
The two companies say that they believe that this change will clarify the nature of the joint venture for customers and emphasise its focus on realising significant production and development synergies.
Both Rio and BHP say they are pleased with progress towards definitive joint venture agreements and expect to finalise these agreements on schedule.
BHP’s 2009 net profit took a big fall from its result the year before, and Rio Tinto recorded net profit of US$3.7 billion in 2008 half its result the previous year.
