In December 2009, the two companies agreed to form a joint venture combining their iron ore production in Western Australia, though not their marketing operations.
A revival of demand for raw materials as the global economy regains strength has fueled a string of takeovers and deals in the mining and energy sectors in recent years, and the two companies had hoped to reap substantial savings by combining their iron ore operations in the remote Pilbara region in Western Australia.
The mining giants BHP Billiton and Rio Tinto signed an agreement over the weekend to combine their iron ore operations in Western Australia, a deal the companies said would save them $10 billion a year.
BHP Billiton and Rio Tinto heated up the Australian market in the morning after the two mining giants on Friday signed a joint venture agreement to combine their iron ore assets in West Australia.
BHP Billiton and Rio Tinto heated up the Australian market in the morning after the two mining giants on Friday signed a joint venture agreement to combine all their iron ore assets in West Australia.
In a separate statement, BHP's chief executive, Marius Kloppers, said, "The large synergies from combining our Western Australian iron ore assets with Rio Tinto's have caused us to persevere in seeking to obtain regulatory approvals".
An iron Pickaxe can mine Coal Ore, Diamond Ore, Iron Ore, Redstone Ore, Gold Ore and Emerald Ore.
A BHP-Rio combination would have a 40% combined share of the seaborne iron ore market.
A BHP-Rio combination would have a 40% combined share of the seaborne iron ore market, which would rival market leader CVRD of Brazil, whichhas a similarly sized share.
All the planned expansions by the world's largest iron ore producers combined fail to meet China's projected demand for 2010, said Peter G. Harris, senior materials analyst at Commonwealth Securities in Melbourne.
Chinese steel makers have also been vociferously objecting to the overwhelming influence that a combined company would have on iron ore prices.
