A diversified natural resources company and among the world’s largest producers of major commodities, including aluminium, coal, copper, iron ore, manganese, nickel, silver and uranium, and has substantial interests in oil and gas. I have a holding in my income portfolio (epic code: BLT).
BLT announced today that Itochu Corp. and Mitsui & Co. Ltd. will invest approximately US$0.8bn and US$0.7bn respectively in shares and loans of BHP Iron Ore (Jimblebar) Pty Ltd, representing an 8% and 7% interest in the Jimblebar mining hub and resource.
The mine will have an initial production capacity of 35m tonnes and Itochu & Mitsui will secure 5m tonnes annually (approximately 4% of Japanese requirement) from the deal.
Mitsui and Itochu already collectively have a 15% stake in BLT's Western Australia Iron Ore mine, rail and port infrastructure.
Including this deal, BLT have divested just over $8bn since April 2012, as part of a divestment programme that is expected to realise $25bn; thereby substantially reducing their $30bn debt and giving them increased flexibility to improve cash returns to shareholders.
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