Mitsubishi inks pact signs Australia iron ore project

24 November 2011: Japan's Mitsubishi Corp has agreed to buy partner Murchison Metals' stakes in an iron ore development and a port and rail project in Western Australia for $315 million (approx Rs. 1,653 Crore), aiming to rescue the two multi-billion dollar projects.

Murchison is selling its 50 percent stakes in the Jack Hills project and Oakajee port and rail as it was having trouble raising its share of the funding for them. The Oakajee project was designed to open a second major iron ore province in Australia to challenge the dominance of global giants Rio Tinto and BHP Billiton. Murchison will pay a small break fee of A$3 million (approx Rs 15 crore) if it scraps the deal with Mitsubishi.

Source: Business Recorder