Mitsui's $5.3 Billion Bet on Australia's Rhodes Ridge Iron Ore Project

Mitsui & Co., Ltd. ("Mitsui", head office: Tokyo, President and CEO: Kenichi Hori) has announced a significant investment in the iron ore sector with the acquisition of a 40% interest in the Rhodes Ridge iron ore project in Australia ("Rhodes Ridge", or "RRJV"). The total acquisition price for both transactions amounts to 5,342 million USD (approximately 800 billion JPY).

The acquisition is composed of two transactions:

1. A definitive sale and purchase agreement has been signed to acquire VOC Group Limited’s ("VOC") entire 25% interest*1 in the RRJV. The acquisition price is 3,339 million USD (approximately 500 billion JPY) including stamp duty. The acquisition is planned to be completed within FY March 2026, after the fulfillment of conditions precedent, including obtaining the necessary approvals from relevant authorities.
2. A heads of agreement has been signed with AMB Holdings Pty Ltd ("AMB") to acquire a 15% interest*1 in the RRJV. The acquisition price will be 2,003 million USD (approximately 300 billion JPY) including stamp duty. Mitsui will proceed with due diligence and negotiations in order to sign a definitive agreement. The completion of the acquisition will be subject to the fulfillment of conditions precedent, including obtaining the necessary approvals from relevant authorities.

Rhodes Ridge is located in the Pilbara region of Western Australia, where Mitsui has been involved in iron ore businesses since the 1960s. The project is one of the world's largest undeveloped iron ore deposits, with 6.8 billion tons of Mineral Resources. Production is expected to start by 2030. With the acquisition of a total 40% interest, Mitsui's annual equity share of production from the project is expected to be approximately 16 million tons at the initial production stage and to exceed 40 million tons after further expansion. Mitsui's annual equity share of iron ore production for FY March 2024 was 61 million tons, and the addition of Rhodes Ridge will further strengthen Mitsui's long-term earnings base.

Rhodes Ridge will be developed and operated by Rio Tinto. As the existing Robe River iron ore project, in which Mitsui is participating and for which Rio Tinto is also the operator, is geographically close to the project, synergies are expected by utilizing existing infrastructure such as railways and ports, and by blending ores. Mitsui has defined Industrial Business Solutions as one of its three Key Strategic Initiatives in its Medium-term Management Plan 2026, and has been making efforts to provide solutions for the stable supply of essential resources, materials, infrastructure, etc. Iron ore produced at Rhodes Ridge will be blended into the ore sold by Rio Tinto and planned to be exported to countries in Asia including Japan. Through the investment in Rhodes Ridge and the ensuing development and production, Mitsui will contribute to the long-term economic development of countries in Asia.

Following the acquisition, 400 billion JPY will be added to the Management Allocation*2, which is part of Mitsui's cash flow allocation framework*3. As a result, the new balance of the Management Allocation will be 550 billion JPY, allowing Mitsui to continue to pursue flexible and strategic capital allocation to investments for growth and additional shareholder returns.

The impact of this acquisition on Mitsui's consolidated financial results for FY March 2025 is expected to be minor.

1. Overview of Rhodes Ridge iron ore project
(1) Name Rhodes Ridge Joint Venture (“RRJV”)
(2) Asset Iron ore interest (Mineral Resources: 6.8 billion tons)
(3) Interest ratio Before acquisition Rio Tinto 50%、 VOC (Rhodes Ridge Mining (No 2) Pty Ltd) 25%、 AMB (Rhodes Ridge Mining (No 1) Pty Ltd) 25% After acquiring 25% from VOC Rio Tinto 50%、Mitsui 25%、 AMB (Rhodes Ridge Mining (No 1) Pty Ltd) 25% After acquiring 15% from AMB Rio Tinto 50%、Mitsui 40%、 AMB (Rhodes Ridge Mining (No 1) Pty Ltd) 10% (4) Acquisition price Total: 5,342 million USD (approx. 800 billion JPY) - For VOC (Rhodes Ridge Mining (No 2) Pty Ltd)’s holding: 3,339 million USD (approx. 500 billion JPY) - For AMB (Rhodes Ridge Mining (No 1) Pty Ltd)’s holding: 2,003 million USD (approx. 300 billion JPY) (5) Development schedule Initial study: Completion expected within 2025 Start of production: Expected by 2030

2. Overview of sellers
(I) VOC Group Limited
(1) Name VOC Group Limited (Rhodes Ridge Mining (No 2) Pty Ltd)
(2) Location Canning Bridge, Applecross WA 6153, Australia
(3) Established Wright Prospecting Pty Ltd in 1956 VOC Group Limited in 2012 Rhodes Ridge Mining (No 2) Pty Ltd in 2022
(4) Relationship between Mitsui and the said company Capital relationship None Personnel relationship None Business relationship None Transactions with related parties None
(5) Asset 25% interest in Rhodes Ridge iron ore project
(6) Asset value 3,339 million USD (approximately 500 billion JPY)

(II) AMB Holdings Pty Ltd
(1) Name AMB Holdings Pty Ltd (Rhodes Ridge Mining (No 1) Pty Ltd)
(2) Location Suite 3, Level 1, 254

Mitsui's acquisition of a 40% interest in the Rhodes Ridge iron ore project aligns with the company's long-term investment strategy, particularly its focus on stability and consistent growth. The acquisition provides Mitsui with access to a large, undeveloped iron ore deposit, allowing the company to expand its iron ore production capacity and strengthen its long-term earnings base. The project's proximity to Mitsui's existing Robe River iron ore project enables synergies by utilizing existing infrastructure, further enhancing the project's economics. The acquisition also aligns with Mitsui's Key Strategic Initiatives, particularly its focus on Industrial Business Solutions, as the investment in Rhodes Ridge will contribute to the stable supply of essential resources and support the long-term economic development of countries in Asia.