15th Apr 2016 05:20
LONDON (Alliance News) - Anglo Australian miner Rio Tinto PLC and Sinosteel Corp have extended their Channar Mining Joint Venture in Australia's Pilbara region.
The Channar joint venture extension, together with a separate agreement for Rio Tinto to supply iron ore from the Pilbara, will enable sales of up to 70 million tonnes of iron ore to Sinosteel over the next five years.
The extension will see 30 million tonnes of iron ore supplied into the joint venture, with Sinosteel making a one-off payment of USD45 million to Rio Tinto and providing additional production royalties linked to the iron ore price.
In a separate agreement, Rio Tinto will sell up to 40 million tonnes of iron ore to Sinosteel between 2016 and 2021.
The joint venture extension is subject to certain conditions precedent being met, including West Australian, Australian and Chinese Government approvals.
Copyright RTT News/dpa-AFX
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