JOHANNESBURG (miningweekly.com) – Diversified mining group Rio Tino and its long-time joint venture (JV) partner, Sinosteel, have agreed to further extend their Channar iron-ore mining JV.
The extension will see an additional 10-million tonnes of iron-ore delivered into the JV from Western Australia. Sinosteel will make an upfront payment of $15-million to Rio Tinto, as well as production royalties linked to the iron-ore price.
The original Channar JV, signed in 1987, provided for the production of 200-million tonnes of iron-ore. Rio Tinto and Sinosteel extended the JV in 2010 by an additional 50-million tonnes and again in 2016 by 30-million tonnes.
The latest extension increased the life of the JV to cover production totalling 290-million tonnes.
“Channar joint venture is one of Australia’s most significant trading partnerships and has helped pave the way for the incredibly strong relationship we have forged with China today. The extension represents another milestone in our 30-year partnership that has seen more than 250-million tonnes of iron-ore delivered from the Pilbara to China,” Rio Tinto Iron Ore CEO Chris Salisbury said in a statement on Friday.
Rio Tinto has a 60% share in the JV and Sinosteel a 40% share. The JV provides Sinosteel with offtake rights for production from the Channar mine.
Edited by: Creamer Media Reporter
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