Rio Tinto, BHP Billiton ditch iron ore venture plan in Australia

09:47, October 18, 2010      

Email | Print | Subscribe | Comments | Forum 

Rio Tinto and BHP Billiton on Monday announced they have scrapped plans for their 120 billion dollars (118.8 billion U.S. dollars) iron ore joint venture in Western Australia's Pilbara region.

The European Commission, the Australian Competition and Consumer Commission, Japan and Korea's Fair Trade Commissions and the German Federal Cartel Office, have advised both companies that the proposal would not be approved in its current form.

According to BHP and Rio, some regulators wanted changes that the two miners were not prepared to accept, and therefore, the companies decided to abandon the deal.

"The full value of the synergies on offer from a 50-50 joint venture was a prize well worth pursuing," Rio Tinto chief executive Tom Albanese said in a statement.

"Both companies have worked hard together over the last 16 months in a positive spirit to demonstrate its pro-competitive effects and I am disappointed that ultimately the regulators did not agree with us."

The proposed joint venture would be responsible for one third of global iron ore exports, and the companies also expected the venture to save them around 10 billion dollars (9.9 billion U.S. dollars) in costs.

However, European steel makers were concerned on the rising iron ore prices, and said the plan was anti-competitive, which will make the German vehicle-making industry particularly disadvantaged.

Source: Xinhua


  • Do you have anything to say?


Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • Chinese Navy soldiers hold an evening party marking the upcoming 62nd National Day aboard Chinese Navy hospital ship "Peace Ark" in the Pacific on Sept. 28, 2011. The Chinese National Day falls on Oct. 1. (Xinhua/Zha Chunming)
  • Photo taken on Sept. 30, 2011 shows the crowd at the plaza of Beijing Railway Station in Beijing, capital of China. The railway transportation witnessed a travel peak with the approach of the seven-day National Day holidays on Friday. (Xinhua)
  • A man wearing high-heel shoes takes part in the 3rd annual Walk a Mile in Her Shoes, an event when men literally walk in women's shoes to raise awareness about ending violence against women, at Yonge-Dundas Square in Toronto, Canada, Sept. 29, 2011. (Xinhua/Zou Zheng)
  • Photo taken on Sept. 29, 2011 shows a cargo ship in danger on the sea near Zhuhai City, south China's Guangdong Province. Cargo ship Fangzhou 6 of Qingzhou of southwest China's Guangxi Zhuang Autonomous Region lost control after water stormed into its cabin due to Typhoon Nesat on the sea near Zhuhai Thursday, leaving 12 crew members in danger. Rescuers rushed to the ship and saved them by using a helicopter. (Xinhua)
  • Actress Gong Li poses for L'Officiel Magazine. (Xinhua Photo)
  • Demonstrators from the Occupy Wall Street campaign hold placards as they march in the financial district of New York September 29, 2011. After hundreds of protesters were denied access to some areas outside the New York Stock Exchange on September 17, demonstrators set up a rag-tag camp three blocks away. Zuccotti Park is a campground festooned with placards and anti-Wall Street slogans. The group is adding complaints of excessive police force against protesters and police treatment of ethnic minorities and Muslims to its grievances list, which includes bank bailouts, foreclosures and high unemployment. (Xinhua/Reuters Photo)
Hot Forum Discussion