BHP (NYSE:BHP), Rio Tinto (NYSE:RIO) JV Opposed by Germany, Japan

Both Germany and Japan have signaled they're going to oppose the proposed iron ore joint venture between BHP (NYSE:BHP) and Rio Tinto (NYSE:RIO), citing competition concerns.

It is opposed by steelmakers in both countries, who have pressured regulators to oppose the deal.

If the companies are allowed to go ahead with the deal it would save them a minimum of $10 billion in costs from combining railroads, ports and mines in the Western Australia region of Pilbara.

The companies said in a joint statement: “The parties continue to believe that the joint venture is pro-competitive and will increase the supply of iron ore. However, both BHP Billiton and Rio Tinto acknowledge the concerns expressed by some regulators and the obstacles to achieving clearance for the joint venture.”

Rio and BHP can both respond to the objections before a final decision is made.

They said they haven't decided the next steps to take concerning the venture at this time.

BHP (NYSE:BHP), Rio Tinto (NYSE:RTP) Joint Venture on Hold

With the controversial mineral tax of the Australian government still hanging in the air, the joint venture between BHP Billiton Ltd.(NYSE:BHP) and Rio Tinto (NYSE:RTP) looks like it'll be delayed.

The highly anticipated $116 billion JV between the two mining giants is for the production of iron ore.

Both companies have a lot on their plate since the joint venture agreement, as BHP is attempting to acquire fertilizer giant Potash Corp. (NYSE:POT), and Rio Tinto has invested in some existing projects, including increasing their stake in Ivanhoe Mines (NYSE:IVN), and investing in their current projects with Argyokle Diamond Mine and Pilbara iron-ore mine.

They also signed a deal with Aluminum Corporation of China Limited – Chinalco to operate and develop their Simandou iron ore asset in Guinea.

Although the BHP, Rio deal has somewhat fallen out of the public eye, it has great possibilities for both companies to lowers costs and increase production going forward.

Arcelor Mittal (NYSE:MT) India Joint Venture Talks

Arcelor Mittal (NYSE:MT) is reportedly in talks with the state-run Steel Authority of India and Tata Steel to enter into a joint venture.

The Steel Authority of India is also in negotiations with Posco, the largest steel producer in Korea concerning a joint venture as well.

Much of this is probably coming from the high demand for steel, which while slowing some in China, is still poised for significant demand for the year, and into the distant future.

China has a strong and growing steel industry, and this would help India compete better if they could land some joint ventures from strong foreign companies like Arcelor Mittal or Posco.