LONDON (AFP) — Anglo-Australian mining group Rio Tinto said Monday that it had agreed a near doubling of the price of its iron ore sales to Chinese steel maker Baosteel.
Prices are to increase by 80-97 percent depending on the category of iron ore, which is a vital raw material used to make steel.
"Rio Tinto Iron Ore subsidiary Hamersley Iron has today reached agreement with China's Baosteel on the price for Hamersley iron ore deliveries for the contract year commencing 1 April 2008," said a statement issued by Rio Tinto.
A spokesman for Rio Tinto said the deal was "very significant," as iron ore is one of the three main drivers of Rio Tinto's earnings, along with copper and aluminium.
"The increase is higher than the 71 percent and 65 percent settlements announced by Brazilian mining giant Vale earlier in the year, reflecting both the strength of the market and an indication of the proximity of Rio Tinto's iron ore to its customers," the spokesman added.
Could be a good day today for ADY given their JORC and contracts for iron ore are due very soon.
iron ore increase for ady coming
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