mitsubishi shows it's hand, page-8

They are grabbing up everything like a pack of sharks in a feeding frenzy.....

Rising demand for steel in North Asia for use in construction, shipbuilding and other industries is fueling mergers and acquisitions activity in Western Australia's remote Pilbara region, which accounts for about 40% of the global trade in iron ore by sea.

South Korean and Japanese steelmakers have been at the forefront of this activity, striving to secure future supply lines ahead of an estimated global demand increase of 100 million tons of iron ore annually through the remainder of the decade.

The steelmakers are also keen to clinch deals with smaller miners with tenements in Western Australia in a bid to reduce their reliance on Rio Tinto RIO PLC, BHP Billiton Ltd. BHP and Brazil's Vale SA, VALE which dominate the US$150 billion-a-year global iron trade.

Earlier this month, Japan's Kobe Steel Ltd. said it would buy a 9.9% stake in the Southdown iron ore project in Western Australia to secure resources it needs on better terms. Mitsubishi Corp. also placed a bold bet on Western Australia this year, completing the A$325 million acquisition of Murchison Metals Ltd.'s interests in the Jack Hills iron-ore project and Oakajee port and rail project.

"We are delighted that Posco and STX, as our initial Roy Hill investors, have increased their shareholding and we welcome Marubeni into what is the most advanced integrated independent iron ore project in Australia," Ms. Rinehart said in the statement.

Following completion—expected inside two weeks Posco will hold 15% of Roy Hill, Marubeni 12.5% and STX 2.5%, with Hancock holding the remainder.

China Steel Corp. is continuing talks to join the consortium and buy a small portion of Posco's equity, with a deal likely to be concluded in next couple months if regulatory approvals in Australia and Taiwan are in place, a person familiar with the matter told Dow Jones Newswires.


http://online.wsj.com/article/SB10001424052702303816504577312890399212900.html