23rd Feb 2005 10:36
Rio Tinto PLC23 February 2005 Iron ore price settlement Rio Tinto's 100 per cent owned Hamersley Iron today reached agreement withNippon Steel on prices for Hamersley lump, fine and Yandi iron ore deliveriesfor the contract year commencing 1 April 2005. • The price of lump ore will increase by 71.5 per cent to US cents 78.77per dry metric tonne unit. • The price of fine ore will increase by 71.5 per cent to US cents 61.72per dry metric tonne unit. • The price of Yandi ore will increase by 71.5 per cent to US cents58.02 per dry metric tonne unit. Sam Walsh, chief executive of Rio Tinto Iron Ore, said, "This price increasereflects unprecedented demand for our products, driven by the continuing growthin steel consumption, particularly in China." A comparison with 2004 prices, in US cents per dry metric tonne unit, is asfollows: FY04 FY05 % change Lump ore 45.93 78.77 +71.5%Fine ore 35.99 61.72 +71.5%Yandi ore 33.83 58.02 +71.5% For further information, please contact: LONDON AUSTRALIA Media Relations Media RelationsLisa Cullimore Ian HeadOffice: +44 (0) 20 7753 2305 Office: +61 (0) 3 9283 3620Mobile: +44 (0) 7730 418 385 Mobile: +61 (0) 408 360 101 Investor Relations Investor RelationsPeter Cunningham Dave SkinnerOffice: +44 (0) 20 7753 2401 Office: +61 (0) 3 9283 3628Mobile: +44 (0) 7711 596 570 Mobile: +61 (0) 408 335 309Richard Brimelow Susie CreswellOffice: +44 (0) 20 7753 2326 Office: +61 (0) 3 9283 3639Mobile: +44 (0) 7753 783 825 Mobile: +61 (0) 418 933 792Website: www.riotinto.com Notes: • Iron ore is predominantly traded on the world market under long termcontract. • Contract years can differ from calendar years. • The global reference price settlement is expressed as a percentageincrease or decrease from the previous year. • The reference price is usually established for fines ore first becausethis represents 60 per cent of the traded market. Prices for lump and pelletsare then usually determined as a premium to the fines ore price. • Once the annual percentage change is negotiated, iron ore prices aregenerally denominated in US cents per dry metric tonne unit, reflecting a commonbase per unit of iron content. • To compare prices on a "per tonne" basis instead of an "iron units"basis, the following conversion can be used: US$ price per tonne = US cents per dry metric tonne unit x iron content Iron content for Hamersley fine and lump ore is 64 per cent and for HI Yandi 58per cent. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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