Rio Tinto, Sinosteel Further Extend Iron-Ore Mining Venture
November 23 2017 - 5:11PM
Dow Jones News
By Robb M. Stewart
MELBOURNE, Australia--Rio Tinto PLC again extended its
long-running iron-ore mining venture with China's state-owned
Sinosteel Corp. to deliver more of the steel-making commodity from
Australia's remote western Pilbara region.
The agreement will deliver an additional 10 million metric tons
of iron ore from their Channar mine, building on a deal that was
the first large-scale mining initiative between the two
countries.
Sinosteel will make an upfront payment of US$15 million to Rio
Tinto, as well as production royalties linked to the iron-ore
price, the Anglo-Australian company said Friday.
The extension will increase output to 290 million tons from the
Channar operation, which is managed and 60% owned by Rio Tinto and
provides the Chinese steel company with rights to volumes of ore
from the Pilbara.
When it was signed in 1987, the original agreement provided
support for the development of a mine targeting production of 200
million tons thanks to what was the first overseas minerals project
investment by a Chinese enterprise. The scope of the venture was
increased in 2010 by a further 50 million, and then last year the
companies agreed to again extend it by 30 million tons.
"This extension represents another milestone in our 30-year
partnership that has seen more than 250 million tons of iron ore
delivered from the Pilbara to China," Rio Tinto iron ore Chief
Executive Chris Salisbury said.
Write to Robb M. Stewart at robb.stewart@wsj.com
(END) Dow Jones Newswires
November 23, 2017 17:56 ET (22:56 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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