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

January 26, 2010
Shoji Muneoka
Chairman
The Japan Iron and Steel Federation

・ On January 25, 2010, the European Commission announced that it has opened a formal antitrust investigation into the proposed establishment of a production joint venture (JV) between Rio Tinto (RT) and BHP Billiton (BHPB) concerning iron ore operations in Western Australia, under Article 101 of the Treaty on the Functioning of the European Union (on restrictive business practices).

・ The Japanese steel industry views the establishment of the JV as a move that would restrict competition just as the failed acquisition of RT by BHPB would have, through the integration of the parties’ entire production activities in Western Australia. Consequently, the Japanese steel industry opposes the JV.

・ The Japanese steel industry expects the European Commission to conduct a thorough investigation against the JV, and will cooperate fully with the proceedings.