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Rio Tinto Announces 2008 Iron Ore Price Settlement
06/26/2008 - Rio Tinto Iron Ore announces that its subsidiary Hamersley Iron has reached agreement with China's Baosteel on the price for Hamersley iron ore deliveries for the contract year commencing April 1, 2008.
Rio Tinto Iron Ore announced that its subsidiary Hamersley Iron has reached agreement with China's Baosteel on the price for Hamersley iron ore deliveries for the contract year commencing April 1, 2008.
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Nippon Steel Corp. reported on Thursday that, contrary to newspaper reports, its price negotiation with Rio Tinto for iron ore in fiscal 2008 is still continuing, and nothing has been settled as yet.
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Under this agreement, the new prices for Hamersley will be US cents 144.66 per dry tonne unit for Pilbara Blend Fines/ Yandicoogina Fines, and US cents 201.69 per dry tonne unit for Pilbara Blend Lump.
“Rio Tinto is pleased to reach this agreement today with Baosteel, China's leading steelmaker,” said Sam Walsh, chief executive of Rio Tinto's Iron Ore Group. “The agreement reflects the continuing very strong demand in the market for Hamersley's products.”
“The agreement builds on the valuation premium for Rio Tinto's Pilbara iron ore businesses, the importance of which is highlighted as we move towards our 320 and 420 million tonne per annum goals from our expected capacity of about 200 million tonnes in 2008,” added Walsh.
The new prices will be the benchmark for all Hamersley long term contract sales for 2008-09, and includes its Pilbara Blend product, which was launched in July 2007 and which has been strongly endorsed by the market, according to the company.
