0% Japan steel body opposes Rio-BHP JV
Reuters | Tue, 09 Jun 2009 11:27[miningmx.com] -- The Japan Iron and Steel Federation on Tuesday vowed to fight against BHP Billiton and Rio Tinto linking up their iron ore operations, saying the move could restrict competition. "While it takes the form of a joint production venture, it is in effect an anti-competitive move similar to that of the failed takeover bid by BHP of Rio Tinto," the Japanese steel body said in a statement. "We understand the judgement of Japan's competition authorities will also be vitally important in this matter." Debt-ridden Rio on June 5 dumped a $19.5 billion investment deal from Chinese metal group Chinalco, and instead said it and BHP would combine their western Australian iron ore operations into a 50-50 joint venture. BHP will pay Rio $5.78 billion upon completion. The plan to forge a joint venture by the world's second- and third- largest iron ore miners has drawn sharp criticism from global steelmakers. The World Steel Association said on June 5 that it opposed the venture and called on competition authorities to examine the deal seriously. China's leading steel industry group strongly opposes a joint venture deal, China's influential Caijing Magazine reported on Monday. The two mining heavyweights face tough anti-trust scrutiny on the plan, but a shrewd structure to the joint venture could sidestep some concerns, analysts said. "What was very smart of Rio and BHP is that they've done it as a joint venture to use their infrastructure and that only marginally increases the tonnes for BHP," said James Wilson, a mining analyst for DJ Carmichael & Co in Perth. "BHP goes from 150 to 170 million tonnes and Rio actually reduces down from about 200 million to 170 million tonnes. Is this really anti-competition, I don't think so, and doubt the European Commission will think so," he said. BHP and Rio together with the world's No.1 Vale account for nearly 70 percent of traded iron ore. BHP and Rio also account for nearly 80 percent of output from Australia's key Pilbara region.
USER COMMENTS () Click to View
COMMENT
SHARE
E-MAIL
PRINT
Most Read
Commented
Ed's Choice
- »Imperial Crown Trading vies for part of Sishen
by Allan Seccombe | 18 Mar 2010 16:44 - »Aurora fighting rising tide of discontent
by Miningmx reporter | 19 Mar 2010 08:55 - »Smelter contracts puts Eskom in dilemma
by Miningmx team | 18 Mar 2010 10:01 - »ANC tentacles in Sishen mineral rights
by Jan de Lange | 18 Mar 2010 08:59 - »MPs want details on Eskom deals
by Troye Lund | 19 Mar 2010 14:32
- » Pallinghurst maps aggressive growth plans
by Allan Seccombe | 17 Mar 2010 15:27 - » ANC tentacles in Sishen mineral rights
by Jan de Lange | 18 Mar 2010 08:59 - » First Uranium shake up marks fund raising
by Allan Seccombe | 12 Mar 2010 14:51 - » South Africa slips to 4 in gold rankings
by Allan Seccombe | 12 Mar 2010 13:03 - » JSE probes ArcelorMittal conduct
by Jan de Lange | 09 Mar 2010 11:20
- » Imperial Crown Trading vies for part of Sishen
by Allan Seccombe | 18 Mar 2010 16:44 - » South Africa slips to 4 in gold rankings
by Allan Seccombe | 12 Mar 2010 13:03 - » ETF threat hangs over gold
by Allan Seccombe | 08 Mar 2010 18:01 - » Kumba's play for Sishen hits a hurdle
by Allan Seccombe | 17 Mar 2010 16:39 - » AngloGold gets serious
by Allan Seccombe | 11 Mar 2010 15:51
More news from Ferrous Metals
Multimedia
LATEST PODCAST | Pallinghurst steps up its game
| 18 Mar 2010 -
› More 
The MiningMX team delves deeper into the improved results of Gem Diamond and looks at Pallinghurst R ...
Listen ›
RADIO WRAP | More ›
›
First Uranium rescue plan good for Simmers too - Bernard Swanepoel |
›
Chamber's proposal gives an "almost bearable" alternative - Dick Kruger, CoM |
The MiningMX team delves deeper into the improved results of Gem Diamond and looks at Pallinghurst R ...
Listen ›
Podcasts
RSS Feeds
Jobs
Events
JSE Listed stocksReal time resources data.
FREE News Alert! Subscribe to our News Alert