Rio: iron ore deal with Sinosteel extended

(MENAFN) Once again, Rio Tinto has extended a deal to sell its Pilbara iron ore to Sinosteel, the Chinese state-owned steel company.

The two firms will sign a new agreement to extend their Channar Mining mutual venture in WA, as Rio will provide an extra 10m tons of iron ore for a direct payment of 15m USD, and production royalties related to the iron ore price.

Rio Tinto runs the mine, and the JV deal provides off-take rights to Sinosteel for volumes equal to the Channar production.

So far, the joint venture has produced about 250m tons of iron ore and Rio said the current deal will elevate production over the life of the advantage to 290m ton.

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