New iron ore JV complements WA-Japan trading ties

21/07/05
Western Australia's booming iron ore industry has been further boosted today with the signing of a multi-billion dollar joint venture agreement between BHP Billiton Iron Ore and Japan's JFE Steel.
Attending the official signing ceremony, Premier Geoff Gallop welcomed the US $4.3billion (AUD $5.8billion) agreement on the 'JFE Western 4' joint venture, saying it was a vote of confidence in WA.
"WA is the third largest producer of iron ore in the world and our prominence in the global iron ore industry continues to gather momentum," Dr Gallop said.
"The continued growth of the steel industries in Japan, China, South Korea and Taiwan will underpin significant increases in WA's iron ore sales well into the next decade."
The Premier said WA's iron ore industry was already responding to the sustained and increasing demand from Japan and other Asian countries, with the major iron ore companies continuing to improve product quality and infrastructure.
"In addition, many new expansions and new projects are also coming on stream or being announced, and it is anticipated the State will have iron ore production capacity of 300Mt by the end of 2006 and potentially more than 400Mt by the end of the decade," he said.
Dr Gallop met with representatives from Japanese industry on his recent trip to Japan and said it was important that WA's iron ore producers maintained global market share by establishing partnerships that secured the long-term sales of products.
"Japan received 35 per cent of the State's iron ore exports in 2004, worth more than $2billion," he said.
"Today's agreement between BHP Billiton and JFE Steel is testimony to the excellent relationship that exists between WA and Japan and bodes well for a strong and positive future.
"The State Government supports these partnerships and welcomes further Japanese investment into the industry which provides jobs and opportunities for Western Australians."
Japan is currently WA's largest export market. In 2004, total exports to Japan were valued at more than $6.9billion - almost 60 per cent more than the value of the second largest export market, China, and representing 31 per cent of the nation's total exports to Japan.
Premier's office: 9222 9475