asian customers agree iron ore price rise

Asian customers agree iron ore price rise: Rio Tinto
1 Jul, 2008, 0607 hrs IST, AGENCIES

SYDNEY: Anglo-Australian mining giant Rio Tinto announced on Tuesday that it had reached agreement with all its customers in Asia for iron ore price increases of up to 97 percent.

The new settlements are in line with the agreement announced last week with China's Baosteel, which saw lump prices increase by 97 percent and fines prices increase by 80 percent, the company said.

"These agreements are a strong endorsement of the settlement reached last week and reflect the very strong demand for our products across the world's fastest growing markets," said Sam Walsh, chief executive of Rio Tinto's Iron Ore group.

"The agreements throughout Asia will provide an important platform as we embark on the largest expansion in Rio Tinto Iron Ore's history, increasing production from the Pilbara to 320 million tonnes of iron ore per annum in 2012 and 420 million tonnes per annum beyond that.'

The settlements are for iron ore deliveries from Hamersley Iron, Robe River and Hope Downs for the contract year starting on April 1, 2008, the company said in a statement.