KWM is proud to have advised Mitsui on its agreement to acquire a 40% interest in the Rhodes Ridge iron ore project in Western Australia’s Pilbara region.
Mitsui has entered into a sale and purchase agreement to acquire VOC Group Limited’s entire 25% interest. In addition, Mitsui has also signed a heads of agreement with AMB Holdings Pty Ltd with respect to the acquisition of a further 15% interest in Rhodes Ridge from AMB. A definitive agreement for the 15% is subject to ongoing diligence and negotiations. The total acquisition cost (including stamp duty) for these two transactions US$5.342 billion (equivalent to approximately A$8.34 billion at today’s exchange rate).
Rhodes Ridge is one of the world’s largest undeveloped iron ore deposits, with 6.8 billion tonnes of confirmed mineral resources available. The initial production stage is expected to commence by 2030, with production (on a 100% basis) to exceed 40mtpa. With further expansion, production (on a 100% basis), could exceed 100mtpa.
The KWM team was led by Partner Andrew Deszcz, supported by Senior Associate Matt Persico, working closely in particular with specialists in KWM’s respective Environment, Planning & Native Title, Competition, FIRB and Banking & Finance teams.
Andrew Deszcz commented on KWM’s involvement in this landmark transaction for Mitsui:
“KWM has a very longstanding relationship with Mitsui in iron ore in the Pilbara, for which we are very grateful. We are very proud to have had the opportunity to work with Mitsui on this significant and strategic acquisition. The announcement of these transactions is an important milestone and we look forward to continuing to support the Mitsui team in the next phases.”
