In a news release from smh.com.au, Business Day (Sydney Morning Herald), the up-coming joint venture between diamond giants Rio Tinto and BHP Billiton was touted to be a pivotal step for the future iron ore industry in Australia. Tom Albanese, Chief Executive Officer of Rio Tinto, describes the proposed joint venture with BHP Billiton Ltd., as critical to the future success of the company. The planned venture between the two mining companies encompasses iron ore production in Western Australia.



"The joint venture will bring together the Western Australia iron ore assets of both companies, while keeping marketing arrangements totally separate within each company" is how Albanese describes the matter to a group conference in Perth, Australia.



Diamond giant Rio Tinto has currently abandoned its efforts to jointly market as much as 15% of iron ore assets in the face of potential European Commission objections to such a proposed venture with BHP. The importance of the planned venture in iron ore is described as 'crucial' to future operations, at a time when the balance of economic power shifts from the West to the East.



"Over the next five years, China is expected to consume more iron ore than Australia has exported throughout its history", expands Tom Albanese.