Billionth tonne heads on Japan's iron road
BHP Billiton has shipped its one billionth tonne of iron ore to Japan.
BHP’s iron ore boss Jimmy Wilson joined by joint venture participants ITOCHU Corporation (ITOCHU) and Mitsui & Co., Ltd (Mitsui) to celebrate the significant export milestone as the billionth tonne left for Perth.
It has been a long time running for Australia’s Japan-bound iron ore after the first tonne was shipped in 1966.
Wilson says Australia has Japan to thank for the ongoing development of iron ore mining in the Pilbara.
“We also owe much to Japan for their role in growing the iron ore industry in the Pilbara. Our joint venture participants ITOCHU and Mitsui contributed capital, and as trading companies they were a key link into Japanese markets,” he said.
“Over the past decade, we have invested US$24 billion in Western Australia’s mines, rail and port infrastructure and continue to adopt new technology to ensure our operations remain world-class.”
“Today the high-quality iron ore we export from the Pilbara is an essential ingredient for Japan’s high-tech steel industry which leads the world in technology and efficiency,” BHP Billiton President HSE, Marketing and Technology Mike Henry said.
He added that Australia’s iron ore comes back in the form of Japanese technology.
The most significant recent link in the iron ore chain came when BHP last year agreed to sell 15 per cent of its stake in the Jimblebar iron ore mine to Japanese firms ITOCHU and Mitsui for $US1.5 billion.
The deal aligned Itochu and Mitsui’s interests throughout BHP’s iron ore operations, so that assets could be operated in a more useful manner..
As a result of the deal, ITOCHU and Mitsui receive an annual output of over 5 million tonnes as well as a share of future production increases.