Mitsui Invests $5.3 Billion in Rhodes Ridge JV to Secure Long-Term Iron Ore Supply

Mitsui & Co

Japanese Giant Expands Western Australia Offtake Capacity Toward 80 Million Tons Per Year

Japan’s Mitsui & Co. will invest $5.3 billion to acquire a 40% stake in the Rhodes Ridge Joint Venture (RRJV). The move is part of Mitsui’s strategic plan to expand its iron ore offtake capacity in Western Australia to around 80 million tons per year.

The 40% stake will come from existing partners VOC (25%) and AMB (15%). With this acquisition, Mitsui becomes the second-largest stakeholder, following Rio Tinto, which holds 50%. The deal is expected to close by March 31, 2026, according to the company.

The Rhodes Ridge project is set to produce 40 million tons per year in its early stages. Long-term development could increase that to 100 million tons per year. A final investment decision is still pending, but commercial operations could begin as early as 2030.

Mitsui Strengthens Its Role in Global Iron Ore Supply

Initially, Mitsui’s offtake from Rhodes Ridge will be about 16 million tons annually, focused on Asian markets like Japan. Over time, this volume may reach 40 million tons per year, making the project a major contributor to Mitsui’s iron ore portfolio.

Despite the global shift toward decarbonized steelmaking, including electric arc furnace (EAF) adoption, Mitsui believes iron ore will remain vital. The company cited growing crude steel demand, especially in India and Southeast Asia, as key drivers for sustained iron ore consumption.

Broader Investments Support Long-Term Strategy

Mitsui already holds stakes in major Australian iron ore projects, including the Robe River Mining consortium with Rio Tinto and Nippon Steel. The Robe River operation currently supplies Mitsui with 20 million tons per year.

Additionally, joint ventures with BHP account for another 19.9 million tons annually. When combined with the Rhodes Ridge investment, Mitsui's total long-term offtake in Australia will approach 80 million tons per year.

The Rhodes Ridge project has a complex past. Over a decade ago, Western Australia’s Supreme Court required Gina Rinehart to transfer a 25% stake to the Wright family, linked to Peter Wright, a former partner of Lang Hancock of Hancock Prospecting. Since then, Wright’s family, through VOC, has worked alongside Rio Tinto on project development.

This investment highlights Mitsui’s confidence in the long-term fundamentals of the global iron ore market, despite evolving steel production technologies and environmental regulations.