Japanese trading house Mitsui & Co. will buy a stake in an Australian iron ore project for $5.3 billion, in a bet that the global steel industry will need high-quality raw materials to support its push to go green.

Japanese trading house Mitsui & Co said on Wednesday it would acquire a 40% stake in the Rio Tinto-operated Rhodes Ridge iron ore project in Western Australia for $5.34 billion to strengthen its long-term earnings base.

King & Wood Mallesons is acting for Japanese conglomerate Mitsui & Co on its $5.34 billion purchase of an interest in the Rhodes Ridge Iron Ore Project in Australia. The deal marks the largest ever single investment for Mitsui, the company's president and chief executive officer, Kenichi Hori, said in a speech announcing the acquisition.

Japan-based trading company Mitsui & Co. has signed agreements to acquire a 40% interest in the Rio Tinto-operated Rhodes Ridge iron ore project in Western Australia for $5.34bn (Y800.51bn). The deal is expected to bolster Mitsui's iron ore production capacity and long-term earnings base.

The move is a bet that the global steel industry will need high-quality raw materials to support its push to go green.

Rio Tinto notes that Mitsui & Co. has entered agreements to acquire a 40% interest in the Rhodes Ridge Joint Venture (RRJV) from Rio Tinto’s partners.

Rio Tinto PLC (RIO) shares fell as much as 2% in morning trade on Wednesday after Japan's Mitsui & Co. (MITSY) signed agreements to acquire a 40% interest in the Rhodes Ridge Joint Venture (RRJV), a major mining project in Australia,