THE fate of an iron ore production joint venture between BHP Billiton and Rio Tinto in Western Australia's Pilbara region could be decided in July.
The Australian Competition and Consumer Commission (ACCC) will reveal its view on the proposal in less than a month.
ACCC chairman Graeme Samuel says the competition watchdog will issue its final determination on July 21 or 22.
"That's the time frame that we've set down," Mr Samuel told reporters in Adelaide on Friday.
The ACCC is examining whether or not the deal would be a breach of the Trade Practices Act.
It is understood Chinese steel makers are among parties that have made submissions to the ACCC on the planned mega-merger.
BHP Billiton and Rio Tinto in December last year signed binding agreements for the proposed tie-up of their iron ore assets in the Pilbara region, which would save the mining giants an estimated $US10 billion ($11.5 billion) a year.
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Under the deal, the companies would combine adjacent mines into single operations, reduce rail and port costs, maximise product recovery, optimise future growth opportunities and combine management operations.
Subject to regulatory review processes and shareholder approvals, the companies expected to complete the joint venture in late 2010.
Some market observers say the miners will face stiff opposition from iron ore customers and regulators around the world.
In March, the European steel industry association, Eurofer, said it had notified the European Commission of possible anti-competitive practices and abuse of dominant position by the main suppliers of iron ore, namely BHP Billiton, Rio Tinto and Brazil's Vale.
Negative rumblings have also emanated from the World Steel Association.
BHP Billiton and Rio Tinto on Monday reached an iron ore royalty agreement with the WA government that brings them in line with other producers of the bulk commodity.
The companies had since the 1960s enjoyed a royalty concession as a reward for pioneering the Pilbara mining hub.
They will pay a rate of 5.625 per cent for iron ore fines, up from 3.75 per cent previously, as of July 1 this year.
A one-off combined payment of $350 million will also be made by the companies to the WA government.
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