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[Ferro-alloys.com]Nippon Steel & Sumitomo Metal Corporation (“NSSMC”, head office: Chiyoda-ku, Tokyo; Chairman & CEO: Shoji MUNEOKA) and Mitsui & Co., Ltd. (“Mitsui”, head office: Chiyoda-ku, Tokyo; President & CEO: Masami IIJIMA) are pleased to announce that Robe River Iron Associates (“Robe River J/V”, Rio Tinto 53%, Mitsui 33%, NSSMC 14%) has agreed to invest in the development of Deposit B (“the Deposit”) in West Angelas mine and expansion of its production capacity, owned by Robe River J/V in the Pilbara region of Western Australia.

 

The Deposit is expected to start production in January 2015. Upon completion, total production capacity at West Angelas, from the Deposit together with existing deposits, will be expanded from the current 29 million tons per annum (“mtpa”) to 35 mtpa (“Mine Expansion”). Mine Expansion will increase Robe River J/V nameplate capacity by 6 mtpa.

 

Total capital cost for Mine Expansion is estimated to be A$642 million (57.8 billion yen), of which NSSMC will invest A$90 million (8.1 billion yen) and Mitsui will invest A$212 million (19.1 billion yen), in proportion with their respective ownership interests.

 

Through Robe River J/V, NSSMC and Mitsui will continue their effort to enable a stable supply and procurement of iron ore for which the global demand is expected to further grow.