Rio Tinto signs Pilbara deals October 29, 2004 - 11:54AM
Page Tools Email to a friend Printer format Mining giant Rio Tinto Ltd announced it had signed agreements with its Japanese partners in the Robe River Joint Venture, formalising closer co-operation between the Hammersley and Robe iron ore and technical exchanges.
The Pilbara agreements cover common usage of port, rail and power infrastructure between the two operations, and the provision or corporate and site services for both.
Closer coordination of delivery and raw material optimisation logistics were also covered.
The agreements include a long-term sales contract for the supply of 150 million tonnes of Yandi iron ore to Nippon Steel over 20 years, the sale of 47 per cent of the Beasley River iron ore deposit to the Japanese partners.
Rio Tinto iron ore chief executive Chris Renwick said the agreements would not only benefit the operations but further strengthen the relationship with the Robe River Venture's Japanese partners.
"The signing of the Pilbara Iron agreements marks a milestone in the way we wine, transport and export iron ore through the creation of a new organisation that maximises the strengths of both Hammersley and Robe," Mr Renwick said.
Advertisement AdvertisementUnder formal agreements signed earlier this year, Nippon Steel has purchased an eight per cent interest in the Hail Creek joint venture, and has also committed to purchasing 30 million tonnes of coking coal over a 15 year period.
Rio Tinto would receive around $150 million for the sale of its Hail Creek and Beasley River interests, Mr Renwick said.
Both the Pilbara Iron and Beasley River agreements are subject to approvals currently being sought from the West Australian government.
