BHP, Rio Tinto Iron Ore JV Won't Lessen Competition -Trade Min
June 16 2009 - 8:06PM
Dow Jones News
A proposed joint venture between BHP Billiton (BHP) and Rio
Tinto (RTP) to merge their Western Australian iron ore mining
businesses won't lessen competition between the two to market the
raw material, Australia's Trade Minister, Simon Crean, said
Wednesday.
The proposed merger would see the two companies, which dominate
exports from the Pilbara region in Northwest Australia, share iron
ore export facilities in a bid to gain efficiencies and get costs
down, he said.
"They will still operate as separate marketing arms, they will
therefore be competitors and so there won't be any lessening of
competition," Crean told reporters.
"When the details of the proposal emerges there will be
acceptance of that," he added.
China has raised concerns about an Australian export monopoly
emerging as a result of the proposal.
-By Ray Brindal, Dow Jones Newswires; 612-6208-0902;
ray.brindal@dowjones.com