Japanese trading house Mitsui & Co said on Wednesday it would acquire a 40% stake in the Rio Tinto-operated Rhodes Ridge iron ore project in Western Australia for $5.34 billion, to strengthen its long-term earnings base.

Rio Tinto has confirmed that Mitsui & Co. has entered agreements to acquire a 40 per cent interest in the Rhodes Ridge joint venture.

Japan-based trading company Mitsui & Co. has signed agreements to acquire a 40% interest in the Rio Tinto-operated Rhodes Ridge iron ore project in Western Australia for $5.34bn (Y800.51bn). The deal is expected to bolster Mitsui's iron ore production capacity and long-term earnings base.

Rio Tinto notes that Mitsui & Co. has entered agreements to acquire a 40% interest in the Rhodes Ridge Joint Venture (RRJV) from Rio Tinto’s partners.

Japanese trading house Mitsui & Co. will buy a stake in an Australian iron ore project for $5.3 billion, in a bet that the global steel industry will need high-quality raw materials to support its push to go green.

The Japanese trading house said that the Rhodes Ridge project will be developed and operated by Rio Tinto, which holds a 50% interest.

Rio Tinto PLC (RIO) shares fell as much as 2% in morning trade on Wednesday after Japan's Mitsui & Co. (MITSY) signed agreements to acquire a 40% interest in the Rhodes Ridge Joint Venture (RRJV), a major mining project in Australia,