Statement concerning Western Australian iron ore production joint venture of Rio Tinto and BHP Billiton

June 9,2009
Shoji Muneoka
Chairman
The Japan Iron and Steel Federation

On June 5, 2009, Rio Tinto and BHP Billiton announced the signing of a non-binding agreement to establish a production joint venture (the “JV”) for their iron ore operations in Western Australia.

The JV will cover the two companies’ all current and future iron ore assets in Western Australia, including infrastructure, and will combine the production and future expansion projects.

According to Rio Tinto and BHP Billiton, they will continue to sell iron ore independently. However, if the JV is established, all iron ore production of the two companies in Western Australia will be integrated. Although characterized as a consolidation of production activities, we view the establishment of the JV as a move that would restrict competition, just as it would have in the earlier proposed acquisition of Rio Tinto by BHP Billiton. Consequently, the Japanese steel industry opposes the JV.

According to Rio Tinto and BHP Billiton, establishment of the JV will require approval of relevant anti-trust regulators. We therefore believe that any decision by the Japan Fair Trade Commission will be a very important factor. We intend to fully cooperate with the competition authorities in their review of the JV.