Subscribe to RSS feedBHP, Rio submit plan for shared Pilbara iron ore
BHP Billiton and Rio Tinto have met the latest deadline in their plans to merge $126bn of iron ore assets in the Pilbara region of Western Australia.
Export tie-up: BHP Billiton and Rio Tinto target US$10bn in synergies (Photo: Southern Cross Maritime)
The mining giants yesterday signed binding agreements on the proposed joint-venture that set out how the partnership will operate.
They expect the deal to lead to US$10bn in synergies.
In meeting the deadline, the companies have also formally submitted details of the proposal to competition authorities at the European Commission and the Australian Competition and Consumer Commission.
The deal requires approval from both watchdogs and the support of shareholders.
The European Commission has previously signalled "serious doubts" about the deal, which sees rival mines combined, shared use of rail and port facilities at Port Hedland and Dampier and some management consolidation.
BHP and Rio said they expected to complete the joint-venture arrangement by the second half of 2010.
Chinese steelmakers, the major customers of both companies, have strongly opposed the arrangement.
The mining companies collectively export more than 260m tonnes of iron ore from the Pilbara each year, but currently have separate mines, rail assets and port facilities operating as independent supply chains.
The merger would see iron ore mined and transported cooperatively, but marketed and shipped to customers separately.
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