BHPBILLITONCHINAJOINTVENTURE（一）.pdfVIP

JFE WESTERN 4 JOINT VENTURE ANNOUNCEMENT MEDIA BACKGROUNDER General: The Yandi Western 4 Deposit is one of a number of deposits situated within the greater Yandi Mine and contains approximately 115wmt’s of reserves. The Yandi mine is located 120kms north west of Newman. A 32 km rail spur line connects the Yandi mine to the Newman Port Hedland railroad at the 281km mark. A further 32 km extension links Yandi with the Area C mine. The formal signing of the JFE Western 4 Joint Venture consolidates BHP Billiton’s long standing partnership with one of Japan’s leading steel mills, JFE Steel, a relationship which dates back to the start of the development of the Pilbara Iron Ore industry in the late 60s through JFE Steel’s predecessor’s Kawasaki Steel NKK. Under the Joint venture, JFE Steel will pay an undisclosed sum to purchase a 20 per cent interest in the Western 4 deposit from the existing Yandi Joint Venture Participants. BHP Billiton will retain a 68 per cent interest, with existing Japanese joi nt venture partners ITOCHU Minerals Energy of Australia and Mitsui Iron Ore Corporation taking a 6.4 per cent and 5.6 per cent interest respectively. The joint venture will be BHP Billiton’s first iron ore joint venture with a Japanese steelmaker and will underpin sales of approximately 16 million tonnes per annum (mtpa) of iron ore from BHP Billiton’s suite of products over the next 11 years, valued at around US$4.3 billion The joint venture covers an ore reserve of 115 mwt. Mined ore will be included in the Yandi product. A bulk sample of Yandi product was shipped for trial to Kawasaki Steel, Japan, in 1991 following successful testing of ore samples at BHP Billiton’s Newcastle research facility. The first commercial shipment to Japan, also to Kawasaki Steel, was in March 1992. The latest joint venture follows a similar pattern to the proving