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*DJ Mitsubishi,Murchison JV To Spend Y300B;Australia Proj-Nikkei

(MORE TO FOLLOW) Dow Jones Newswires
June 18, 2007 01:05 ET (05:05 GMT)
Copyright (c) 2007 Dow Jones & Company, Inc.
DJ Mitsubishi, Murchison To Launch Iron Ore Devt Proj - Nikkei

TOKYO (Nikkei)--Mitsubishi Corp. (8058.TO) and Australian iron ore producer Murchison
Metals Ltd. agreed Monday to jointly launch in Western Australia what will be the
largest-ever iron ore development project headed by a Japanese company, the Nikkei
reported in its Monday evening edition.
Australia is the world's biggest exporter of iron ore and supplies 60% of
Japan's imports.
A 50-50 joint venture to be established by September between Australian unit Mitsubishi
Development Pty. and Murchison Metals will spend more than 3 billion Australian dollars,
or about Y300 billion, to develop an iron mine, a railway and a harbor.
Possibly as early as 2011, the venture is to annually produce and export to Japan and
other countries a total of 26 million tons of iron ore, an amount equivalent to about 20%
of Japan's annual imports of the material.
The deposit to be developed is in the Jack Hills and estimated to contain about 380
million tons of high-grade iron ore. Murchison Metals started experimental operations
there at the end of last year.
The venture will in 2009 start building infrastructure for the project, including a
harbor along the west coast capable of accommodating 150,000 ton-class vessels and a
420km railway linking the harbor and the mine.
South Korea's largest steelmaker, Posco, has purchased rights to a certain portion
of the shipments, and Mitsubishi will have exclusive sales rights for the remainder.
The project will be partly financed with loans from financial institutions.

(END) Dow Jones Newswires
June 18, 2007 01:21 ET (05:21 GMT)