Mount Newman and the BHP Joint VentureNarrow moat

Mitsui & Co. (8031) — moat facet

Mitsui's 7% of BHP's Pilbara venture produces as much ore as its third of Robe River.

Mitsui signed its long-term purchase agreement for Mount Newman ore in October 19661. Today it owns 7.0% of BHP's joint venture covering Mount Newman, Yandi, Goldsworthy and Jimblebar, and its share of production in the latest year was 20.6 million tonnes2.

Ministers North ownership (%)85%BHP8%ITOCHU7%MitsuiFirst ore 2H 2028, about 20 Mt a year; Mitsui release, July 2026
A 7% partner in BHP's next mine, alongside ITOCHU.

The venture is growing again. On 16 July 2026 the partners took the final investment decision on Ministers North, with BHP at 85%, ITOCHU at 8% and Mitsui at 7%; first ore is expected in the second half of 2028 and annual production of about 20 million tonnes3. The new mine replaces and extends production rather than expanding the venture sharply.

A 7% stake is small, and the ore it produces is about the same as Robe River's third because the BHP venture is much larger. It gives Mitsui scale at low risk: BHP runs the operation and carries most of the capital.

The Ministers North decision shows how a small partner benefits from a large operator. BHP carries 85% of the cost4; Mitsui carries 7% and receives 7% of the ore, about 1.4 million tonnes a year at full production of 20 million56. Being in the venture at all is the advantage.

The measure is Mitsui's share of production after Ministers North starts. A step up from 20.6 million tonnes in the year to March 2029 would confirm the new mine is adding rather than replacing.

Moat trajectory: Holding steady

Ministers North keeps the venture's output steady from 2028.

The number that tests this moat
Reported
BHP joint venture equity production, latest year
20.6 million tonnes (7.0% share)

Scale from a small stake; watch whether Ministers North raises it after 2028.

Source: Mitsui & Co. results presentation, May 2026 ↗
⚠ Threats to the moat
⚠ THREAT 01
A Small Share of Someone Else's Plan
In BHP's venture Mitsui owns less than a rival trading house does.
References
  1. ReportedMitsui signed its long-term purchase agreement for Mount Newman ore in October 1966.
    Mitsui & Co., Annual Securities Report for the year to March 2026 (English) - company history, employees, share price history, total shareholder return, equity production, the revenue of the Singapore trading subsidiary, competition and the Arctic LNG 2 guarantees. — FY to March 2026 · publ. 12 August 2026 · source ↗
  2. ReportedToday it owns 7.0% of BHP's joint venture covering Mount Newman, Yandi, Goldsworthy and Jimblebar, and its share of production in the latest year was 20.6 million tonnes.
    Mitsui & Co., results presentation for the year to March 2026 - producing assets with partners and stakes, LNG projects, affiliates and power contracts. — FY to March 2026 · publ. 1 May 2026 · source ↗
  3. ReportedOn 16 July 2026 the partners took the final investment decision on Ministers North, with BHP at 85%, ITOCHU at 8% and Mitsui at 7%; first ore is expected in the second half of 2028 and annual production of about 20 million tonnes.
    Mitsui & Co. release, 16 July 2026 - final investment decision on Ministers North with BHP and ITOCHU. — July 2026 · publ. 16 July 2026 · source ↗
  4. ReportedBHP carries 85% of the cost; Mitsui carries 7% and receives 7% of the ore, about 1.4 million tonnes a year at full production of 20 million.
    Mitsui & Co. release, 16 July 2026 - final investment decision on Ministers North with BHP and ITOCHU. — July 2026 · publ. 16 July 2026 · source ↗
  5. ReportedBHP carries 85% of the cost; Mitsui carries 7% and receives 7% of the ore, about 1.4 million tonnes a year at full production of 20 million.
    Mitsui & Co. release, 16 July 2026 - final investment decision on Ministers North with BHP and ITOCHU. — July 2026 · publ. 16 July 2026 · source ↗
  6. Moat Explorer calcBHP carries 85% of the cost; Mitsui carries 7% and receives 7% of the ore, about 1.4 million tonnes a year at full production of 20 million.
    Moat Explorer calculation from Mitsui & Co.'s reported figures. Resource share of profit: (253.6 + 164.2) / 834.0 = 50.1% (2026), 51.0% (2025), 58.0% (2024). Iron ore business share: 262.2 / 834.0 = 31.4%. Trailing twelve months to June 2026: net income 833,971 - 191,647 + 294,052 = 936,376; revenue 13,995.2 - 3,299.9 + 4,347.6 = 15,042.9; EPS 291.12 - 66.68 + 103.73 = 328.17. P/S at March year-ends: 5,340.8 / 11,757.6 = 0.45 (2022), 0.44 (2023), 0.80 (2024), 0.55 (2025), 16,969.0 / 13,995.2 = 1.21 (2026). Share price change since March: 5,033 / 5,959 - 1 = -15.5%. Shares issued, split-adjusted: 3,284.7 million (March 2022) to 2,864.7 million (March 2026) = -12.8%. Equity-method profit and dividend income: 447.4 + 178.7 = 626.1, 57.6% of profit before tax of 1,087.1. Segment profit over segment assets, year to March 2026: Mineral & Metal Resources 253.6 / 4,313.2 = 5.9%; Machinery & Infrastructure 225.9 / 4,427.3 = 5.1%; Energy 164.2 / 4,181.4 = 3.9%; Chemicals 67.5 / 2,241.8 = 3.0%; Lifestyle 52.0 / 3,091.1 = 1.7%; Innovation & Corporate Development 59.0 / 2,655.3 = 2.2%; Iron & Steel Products 18.9 / 862.4 = 2.2%. Innovation & Corporate Development including other and adjustments: 59.0 + 20.7 - 27.7 = 51.9 (2026), 87.3 - 42.8 + 21.5 = 65.9 (2025), 53.8 + 5.6 - 5.9 = 53.6 (2024). A $10 move in iron ore: 10 x ¥3.0 billion = ¥30 billion, 3.3% of the ¥920 billion forecast. Berkshire's market value over cost: 8,785 / 3,490 = 2.52 times; dividend on cost 201 / 3,490 = 5.8%. Progress against guidance: 294.1 / 920.0 = 32.0%. Profit growth since the year to March 2016's loss: from -83.4 to 834.0. Resource profits: 335.1 + 281.7 = 616.8 (2024) and 253.6 + 164.2 = 417.8 (2026). Three largest segments: (253.6 + 225.9 + 164.2) / 841.1 = 76.5%. Energy Trading Singapore: 1,986,458 / 13,995,222 = 14.2%. First-quarter one-time gains: (44.2 + 10.2) / 294.1 = 18.5%. Innovation & Corporate Development first quarter against plan: 65.2 / 70.0 = 93%. Arctic LNG 2 provision change: 66,109 - 57,759 = 8,350. A $1 move in US gas: 10 x ¥1.2 billion = ¥12 billion. Vale dividend: 35.0 / 59.6 - 1 = -41%; 43.5 / 35.0 - 1 = +24%. Truck leasing holding: 19.8 / 28.4 - 1 = -30%; 18.8 / 19.8 - 1 = -5%. Profit to the 2029 target: 1,100 / 834.0 = 1.32; to the 2031 vision: 1,400 / 834.0 = 1.68. Berkshire value over cost 2.52 and dividend yield on cost 5.8%. Ministers North at full production: 7% x 20 Mt = 1.4 Mt. Mainstream charges: 15.1 + 15.9 + 28.05 = 59.05. Vale dividend fall against segment profit: (59.6 - 35.0) / 285.4 = 8.6%. Mitsui against smaller houses: profit 936.4 / 619.1 = 1.51 and 936.4 / 575.9 = 1.63; value 14.63 / 8.51 = 1.72 and 14.63 / 8.09 = 1.81. Trailing P/E: 14.63 trillion / 936.4 billion = 15.6; P/S 14.63 / 15.043 = 0.97. Dividend growth: 115 / 27.5 = 4.2 times. — FY to March 2026 · publ. September 2026 · source ↗
    Method: Arithmetic on figures reported in Mitsui & Co.'s results, integrated report, securities report and market data; operands shown in the source line.
Sources
Generated September 24, 2026