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Get out of here. Have you seen the massive announcement. Your too busy try to hype up your stocks.

MAJOR miners Rio Tinto and BHP Billiton have this morning announced a massive iron ore joint venture over the two companies’ operations in the Pilbara, with Rio expected to scrap its deal with Chinese company Chinalco.

In a surprise move, the two companies today unveiled the production JV, which they said would unlock some $US10 billion in production and development synergies.

The deal, which is a non-binding agreement at this stage, will see BHP pay Rio $5.8 billion for “equity-type interests” that will balance out the two company’s interests in the JV to 50:50.

The JV will be headed by a senior management team with broadly equal participation from Rio and BHP.

The initial chairman of the council will be Sam Walsh, who is currently Rio’s iron ore chief, while the chief executive of the council will be Ian Ashby.

In a separate announcement this morning, Rio said that it noted press speculation on the Chinalco deal and, in contrast to vehement denials in the past that the deal was on the rocks, the major said it was “pursuing a range of options”.

Rio’s shares were still in a trading halt at time of publication, but were last at $66.90, while shares in BHP were $35.11 and also in a trading halt.