FACTBOX: BHP Billiton/Rio Tinto iron ore joint venture

SYDNEY (Reuters) - Miners BHP Billiton and Rio Tinto will combine their Australian iron ore operations in a new joint venture.

* BHP Billiton and Rio Tinto to form 50/50 joint venture, combining all current and future iron ore operations in Western Australia's Pilbara iron ore province.

* BHP Billiton to make equalization payment of $5.8 billion to Rio Tinto to boost its interest in the joint venture to 50 percent from 45 percent.

* Potential total synergies with a net present value of over $10 billion.

* Synergies to come from shorter rail hauls, more efficient allocations of port capacity, among others.

* The venture will have about a 60 percent share of the global seaborne iron ore market.

* BHP Billiton and Rio Tinto will continue to market iron ore separately.

* The deal will allow the efficient development of consolidated, larger and more capital efficient iron ore mines.

* The initial chairman of the non-executive owners' council will be Sam Walsh, currently Rio Tinto chief executive iron ore, and the initial CEO of the production joint venture will be BHP Billiton iron ore president Ian Ashby.

* The deal is expected to be completed mid 2010.

* The agreement excludes HIsmelt, any secondary processing facilities, and operations and future business development outside Western Australia.