Mitsui & Co., Japan's largest trader of iron ore and oil, will partner with General Electric Co. in exploring ways to cut costs on mining operations amid the decline in commodity prices.
The initial accord will also study potential cooperation on increasing efficiencies and improving safety, GE said in an emailed statement. The two companies signed the memorandum of understanding to formalize the partnership, according to an official at the Tokyo-based Mitsui, who spoke by phone and asked not to be named due to company policy.
As part of the tie-up, the companies will also study switching to cheaper natural gas from diesel oil for power plants, locomotives and dump trucks to save fuel costs. The partnership is part of a broader move in the mining industry to seek out new ways to reduce costs.