BHP, Rio Tinto in iron ore joint venture

Mining giants, BHP Billiton and Rio Tinto, have signed a binding agreement on joining their vast iron ore operations in Australia, a tie-up expected to result in 10 billion US dollars in savings.

The Anglo-Australian miners announced Saturday they had agreed on all aspects of the joint venture. It will be owned 50:50 by Rio Tinto and BHP Billiton.

Company executives say it will deliver substantial synergies by combining the companies' iron ore operations, with the aim of producing more iron ore at lower cost. European steel makers had called for an investigation amid concerns that the merger would be anti-competitive.