Major Japanese trading house Mitsui & Co. says it will acquire a 40 percent stake in an iron ore project in Australia for 5.3 billion US dollars.



The Rhodes Ridge project in Western Australia is one of the world's largest undeveloped deposits, with 6.8 billion tons of the steelmaking material.



Mitsui says the ore is of high purity and production is expected to start by 2030. The mine's annual output is expected to reach 100 million tons in the future.



Global iron ore prices have recently been on a downtrend amid the slowdown in China's economy.



Mitsui & Co. President and CEO Hori Kenichi says, "Iron ore is very cost-competitive, so we would be able to continue development while making a profit, even if there are some swings in market conditions."



Hori said he believes global demand for steel will grow, especially in India and Southeast Asia, and Mitsui aims to be prepared for that.