The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed on March 9 a loan agreement amounting to up to USD300 million (JBIC portion) with Mitsui Iron Ore Development Pty. Ltd. (MIOD), an Australian company invested in by Mitsui & Co., Ltd. (Mitsui). The loan is co-financed with Mizuho Bank, Ltd., bringing the total co-financing amount to USD430 million equivalent.
The loan is intended to finance part of the funds required by MIOD, which has acquired a 40% interest in the Rhodes Ridge iron ore mine in the Pilbara region of Western Australia.
Japan relies on Australia for approximately 60% of its annual iron ore imports, and iron ore from Western Australia, the main source of these imports, is a critical raw material for Japanese steelmakers. Against this backdrop, Mitsui states in its Medium‑term Management Plan 2026 that it aims to provide solutions for stable supply of resources essential for the development of society. Under this policy, the company seeks to further expand and reinforce its iron ore business by increasing its equity share of annual production from the current level of approximately 62 million tons to more than 100 million tons in the future. This will be achieved through the development of the Rhodes Ridge iron ore mine, which has iron ore grades among the highest in Australia and one of the world’s largest mineral resources. Furthermore, the close proximity of the Rhodes Ridge iron ore mine to Mitsui’s Robe River iron ore operations is expected to generate synergies by leveraging existing rail and port infrastructure and through ore blending.
The loan supports Mitsui in securing a participation interest in high‑quality iron ore in Western Australia, which is indispensable for the production of high‑grade steel by Japanese steelmakers, thereby contributing toward Japan’s efforts to acquire important resources overseas and enhance supply chain resilience in the steel and iron industry.
As Japan's policy-based financial institution, JBIC will continue to provide financial support for the securing of a stable supply of mineral resources to Japan, in collaboration with private financial institutions.
