Mitsui & Co. has entered agreements to acquire a 40% interest in the Rhodes Ridge Joint Venture (RRJV), in the East Pilbara of Western Australia, from Rio Tinto’s partners.

The Japan-based trading house has agreed to acquire all of VOC Group Limited’s (VOCG) 25% interest in the joint venture. Separately, it has entered into a heads of agreement to acquire a further 15% interest in the RRJV from AMB Holdings Pty Ltd. Both transactions are subject to regulatory approvals and other closing conditions. The total transaction value amounts to $5.3 billion.

Mitsui & Co. and Rio Tinto are long-standing partners at the Robe River Joint Venture. Rio Tinto welcomes Mitsui & Co. to Rhodes Ridge and looks forward to progressing the project.

Rio Tinto’s 50% interest in the RRJV and the terms of the joint venture arrangements are unchanged. Under the HOA, AMB Holdings Pty Ltd would retain a 10% stake in the RRJV.

A prefeasibility study to progress the development of Rhodes Ridge is expected to be completed this year, with a feasibility study to follow.

The commencement of a PFS follows completion of an Order of Magnitude study that considered development of an operation with initial capacity of up to 40 Mt/y, subject to relevant approvals.

With the acquisition of a total 40% interest, Mitsui’s annual equity share of production from the project is expected to be some 16 Mt/y at the initial production stage and to exceed 40 Mt/y after further expansion, it said.

The development would use Rio Tinto’s rail, port and power infrastructure. First ore from Rhodes Ridge is expected by 2030.