RIO TINTO AND BHP BILLITON

Proposed junction venture between Rio Tinto and BHP Billiton

Proposed junction venture between Rio Tinto and BHP Billiton

1) BHP and Rio Tinto's conclusion on junction Venture

BHP Billiton and Rio Tinto signed an agreement on basic principles for establishing the joint venture covering entirety of both companies active Western Australian iron ore. Currently, companies signed binding agreements for joint venture proposal covering all aspects of how joint venture will operate and be governed. Companies have also submitted claims to European Commission and Australian Competition and Consumer in connection with proposed joint venture and expect to file applications in other relevant jurisdictions shortly. Businesses understand that European Commission will review joint venture under Article 101 (ex Article 81). Taking into account all processes of regulatory review and shareholder approval, BHP Billiton and Rio Tinto provides for completion of EP in second half of calendar 2010.

Joint venture production includes all current and future assets in Western Australia iron ore and liabilities and will be owned 50:50 by BHP Billiton and Rio Tinto. It will deliver significant synergies resulting from combination of business operations Western Australian iron ore, with aim of producing more iron ore at the lower cost.

BHP Billiton CEO, Marius Kloppers, said, "We are very pleased to now have prescribed and binding affirmations in place to develop this significant venture. In history of efforts of both companies will join these two operations of iron world class ore from Western Australia on several occasions, this arrangement has actually been more than the decade in making. This is an important milestone for delivery of additional benefits to both groups of shareholders, and shareholders of our respective joint venture partners in Pilbara region. "

An important trend that is actually in aim worldwide is the advanced diversity of the workforce. The growing gender, ethnic and heritage diversity in the workforce creates trials but furthermore opportunities. Thus, Rio Tinto is disputed to manage and blend both gender workforces. When they have competently organised a globally diverse workforce, the benefits are gigantic to Rio Tinto which will finally lead to comparable advantage. According to UNEP (2002), the perform of standardization, are becoming common nowadays, which is advised as a less than satisfying perform which will eventually lead to the decrease of individuality and uniqueness of different countries. Rio Tinto should take note and be cognizant of that when they have an expansion to different countries, they should acclimatize and be attentive of the local favoured way of dwelling and doing things.

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