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The jv, named Tewoo-ITC Global Trading, is 51% owned by Tewoo Group and 49% owned by Itochu, according to a release by the Japanese trading corporation on Tuesday July 1.
Total investment in the project is about $30 million, according to Itochu.
This is the first time that a Japanese trading company has tried to sell iron ore in partnership with a Chinese state-owned trading company, Itochu said.
The new venture will procure iron ore and other minerals through Itochu’s overseas network, and take advantage of Tewoo Group’s domestic processing facilities and sales network in China.
Itochu and Mitsui collectively hold a 15% interest in BHP Billiton’s Western Australia Iron Ore mine, rail and port infrastructure, which has a capacity of 220 million tpy.
Itochu also jointly holds a 40% stake in Nacional Minerios S.A in Brazil with JFE, Kobe Steel, Nisshin Steel, Posco, and China Steel Corp, according to information on its website.
Itochu also develops coal projects in Australia, Indonesia and Colombia with partners including Glencore and Drummond.
Japan’s Itochu Corporation has formed a joint venture with China’s Tewoo Group to handle iron ore imports and sales.