Mitsui, one of Japan's largest companies, has opposed traditional thinking to delve into iron ore, and in the process, the wealth of an already rich Australian family has increased by $5.3 billion.
As iron ore prices fall, counter-cyclical investment sees Mitsui buy 40% of its shares in the undeveloped giant iron ore deposit in the Pilbara area of Pillbara, Western Australia, from A descendant of the late Peter Wright purchased.
Australian iron ore rained in the port before being shipped to Asian steel mills.
The deal will close the gap between the Wright family and Australia’s richest man, Gina Rinehart, who also has a $29.6 billion fortune based on her stock. Iron ore discovered by the late father Lang Hancock, Wright's mineral exploration partner.
It was the iron ore discovery proposed by Hancock and Wright in the 1950s that laid the foundation for the fate these families now enjoy, but it was Asia’s demand for steel that turned millions of dollars into Billions of dollars.
Mitsui was an early investor in Australian resources, especially iron ore and coal, and had established close trading relations in Australia, but the deal was not reached last week, while the Wright family's interests are believed to be Mitsui in modern times. The largest investment in history.
Multiple family members benefit
Several members of the Wright family benefited from Mitsui’s investment.
Peter Wright's daughter Angela Bennett received $2 billion for selling a 15% stake in the Roz Ridge Iron Ore Deposit. She will retain a 10% interest in the project and is not expected to produce the first ore by 2030.
Wright's two granddaughters, Leonie Baldock and Alexadra Burt, shared $3.4 billion to sell their Rhodes Ridge ) 25% of all.
Rio Tinto, a large Anglo-Australian mining company, owns a 50% stake, which is managing the development plan and design, which will be exported through Rio Tinto's existing railway and port systems.
Parker Point iron ore export loading facility in Rio de Janeiro. (Photo of Aaron Bunch/Getty Pictures)
Rhodes Ridge's new ownership structure is a deposit of 680 million tons of premium ore and will be through its company Amb Holdings 50% Rio Tinto, 40% Mitsui and 10% Angela Bennett.
Mitsui Chairman Kenichi Hori described Rhodes Ridge as “the last remaining crown jewel of Pilbara”.
He also refused to worry about a steep drop in iron ore prices, as China's demand rapids, which reportedly peaked in steel consumption could see a sharp drop.
According to reports, Horry told Australian media that “steel production in India and East Asia is expected to grow strongly in India and Southeast Asia.”
Mitsui has been in a relationship with the Wright family for more than 20 years due to her interest in Rhodes Ridge.
