Mitsui & Co to invest over $200 million in Pilbara iron ore project

Mitsui & Co Ltd on Tuesday said it has decided to invest AUD329 million, or USD217.8 million, in the development of three new West Angelas iron ore deposits owned by the Robe River joint venture.

Tokyo-based conglomerate Mitsui holds a 33% stake in Robe River, while London-based miner Rio Tinto PLC owns 53% and Tokyo-based steelmaker Nippon Steel Corp holds 14%.

Mitsui's latest investment will contribute to the AUD998 million needed to develop the three new deposits located in the Pilbara region of Western Australia.

The project has received the major necessary approvals, and first production is slated to begin in 2027.

With this investment, annual production at West Angelas will be maintained at 35 million tons over the coming years, of which Mitsui has an approximately 12 million tons share.

"This project will leverage existing facilities, railways and port infrastructure, minimizing development costs maintaining the cost competitiveness of the existing operations," Mitsui commented.

Looking ahead, Mitsui aims to increase its annual equity share of iron ore production to over 100 million tons, up from 62 million tons in the financial year that ended in March.

"The development of new deposits at the West Angelas iron ore mine forms part of Mitsui's broader strategy to further strengthen the long-term earnings base of our core businesses. Mitsui remains committed to contributing to the stable supply of essential mineral and metal resources for society," Mitsui said.