Mitsui's $5.3 Billion Bet on Pilbara Iron Ore Mine

Mitsui & Co., Ltd. ("Mitsui"), a Japanese multinational trading and investment company, 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.



Mitsui's acquisition of a 40% interest in the Rhodes Ridge iron ore project aligns with its long-term strategic goals, particularly its focus on Industrial Business Solutions. The project's large resource base and proximity to existing infrastructure and operations will contribute to the stable supply of essential resources, strengthen Mitsui's long-term earnings base, and support the economic development of countries in Asia. The acquisition also allows Mitsui to continue pursuing flexible and strategic capital allocation, positioning it well for future growth and additional shareholder returns.