Mitsui & Co. is making its largest single investment ever, agreeing to pay $5.3 billion for a 40% stake in the Rhodes Ridge iron ore project in Western Australia’s Pilbara region.
The Japanese trading house will acquire 25% from VOC Group Limited for $3.3 billion and 15% from AMB Holdings for $2 billion. Rio Tinto, which will operate the project, retains its 50% holding.
Rhodes Ridge contains 6.8 billion tons of mineral resources, making it one of the world’s largest undeveloped iron ore deposits. The project boasts an average iron content of 61.6%, higher than typical Australian mines, potentially giving it an edge in an industry grappling with declining ore grades.
Production is slated to begin by 2030, with initial capacity of 40 million tons annually, potentially expanding beyond 100 million tons. Mitsui expects the project to generate annual operating cash flow of ¥100 billion ($670 million) at the initial stage, rising to ¥250 billion after expansion.
The acquisition fits Mitsui’s strategy of securing high-quality resources while addressing sustainability concerns. The company plans to leverage existing rail and port infrastructure from its nearby Robe River joint venture with Rio Tinto to reduce development costs.
“Rhodes Ridge will become a fourth pillar in our iron ore business alongside partnerships with Vale, BHP and Rio Tinto,” Kenichi Hori, Mitsui’s CEO, told reporters in Tokyo. The deal will boost Mitsui’s annual iron ore equity production from 61 million tons to over 100 million tons after expansion.
The transaction requires regulatory approvals and is expected to close in fiscal 2026. Mitsui will partially finance the purchase through loans, with its net debt-to-equity ratio increasing by approximately 0.1.
