RIO Tinto and BHP Billiton have announced that they will combine their mining, heavy haul rail, equipment, technology and research, port and other iron ore production assets in Western Australia.
The companies have signed a non-binding agreement sets out plans to establish an equally-owned joint venture which will reduce costs and boost production.
The companies expect that the joint venture will unlock significant value from the companies’ overlapping, world-class resources.
BHP Billiton CEO Marius Kloppers says the synergies in this combination are so substantial that both companies have been investigating ways to combine these operations for more than a decade.
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