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Australian iron ore producer BC Iron announced on Monday that it had signed agreements with its joint venture partner Fortescue Metals Group to acquire an additional 25 percent interest in the Nullagine iron joint venture (NJV) in Western Australia. BC Iron will increase its interest in NJV, the Pilbara project, form 50 percent to 75 percent. The transaction is expected to be completed within a week and be effective from Jan. 1, 2013, BC Iron said in a statement. BC Iron's share of annual production will increase by 80 percent from 2.5 million tonnes a year to 4.5 million tonnes a year as a result of the deal, the company said. According to BC Iron, the Nullagine joint venture will increase its total export production to 6 million tonnes a year. "The total consideration payable by BC Iron to Fortescue ( including the Rail and Port Prepayment) has been agreed at 190 million AU dollars (198.95 million U.S. dollars), plus a price participation arrangement payable to Fortescue in certain iron price conditions," BC Iron said in the statement. BC Iron's Managing Director, Mike Young, said, "This Transaction reinforces the strong on-going relationship we have with Fortescue and we look forward to broadening that relationship going forward." Fortescue Chief Executive Nev Power said the deal reflected the strong relationship established with BC Iron over the years.