BHP Billiton Limited
(ASX:BHP) has extended its long term joint venture relationship ITOCHU and Mitsui.
Under the terms of the agreement, ITOCHU and Mitsui will invest $800 million and $700 million respectively in shares and loans of BHP Iron Ore, representing an eight and seven per cent interest in the Jimblebar mining hub.
The investment includes a share of the capital costs involved in the project’s expansion to date.
The deal is subject to approval from the Foreign Investment Review board and other conditions and is expected to be completed in the September 2013 quarter.
BHP’s iron ore president Jimmy Wilson says the new Jimblebar mine will have initial production capacity of 35 million tonnes per annum.
BHP generated a net profit $4.1 billion in the first half of the current financial year.
