Statement concerning extending review by Japan Fair Trade Commission on planned joint venture between BHP Billiton and Rio Tinto

July 16,2010
Eiji Hayashida
Chairman
The Japan Iron and Steel Federation

The Japan Fair Trade Commission (JFTC) announced on Friday, July 16, that it has moved forward to a Phase II Review of the proposed iron ore production joint venture (JV) in Western Australia between BHP Billiton and Rio Tinto. The decision was made as a result of its Phase I Review based on the application filed by the two miners for a Prior Consultation regarding Business Combination Plans.

The JISF, which has requested the JFTC to conduct a close examination and to impose appropriate measures on the proposed JV, welcomes the opening of the review and anticipates that the authorities will conduct a fair and impartial review of the JV issue.

The Japanese Steel industry consistently opposes the proposed JV, based on its understanding that, if the proposed JV were allowed to proceed, all the iron ore production activities in Western Australia of the two mining giants would be completely integrated, and the JV would therefore be likely to substantially restrict competition, just as would have been the case had the proposed merger of Rio Tinto by BHP Billiton in 2008 materialized.

The JISF, on behalf of the Japanese steel industry, continues to request that the JFTC conduct a thorough review and will cooperate fully with the JFTC’s investigation.