Rio Tinto PLC Rio Tinto and Sinosteel extend Channar Mining JV (4127X)
24 Novembre 2017 - 08:00AM
UK Regulatory
TIDMRIO
RNS Number : 4127X
Rio Tinto PLC
23 November 2017
Rio Tinto and Sinosteel extend Channar Mining Joint Venture
24 November 2017
Rio Tinto and China's Sinosteel Corporation have agreed to
extend their historic Channar Mining Joint Venture.
This third extension of the joint venture, confirmed in Beijing
by Rio Tinto chief executive J-S Jacques and Sinosteel chairman Xu
Siwei, will see an additional 10 million tonnes of iron ore
delivered into the joint venture from Western Australia.
Rio Tinto Iron Ore chief executive Chris Salisbury said "The
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. This 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."
The extension will see Sinosteel make an upfront payment of
US$15 million to Rio Tinto as well as production royalties linked
to the iron ore price. It is conditional upon approvals from the
Western Australian, Australian and Chinese governments.
The original Channar joint venture was signed in 1987 and
provided for the production of 200 million tonnes of iron ore. This
third extension will increase the life of the joint venture to
cover production totalling 290 million tonnes.
Notes to editors
The Channar joint venture (Rio Tinto share 60 per cent,
Sinosteel share 40 per cent) owns the Channar mine in the Pilbara
region of Western Australia. The mine is managed by Rio Tinto and
the joint venture agreement provides Sinosteel with off-take rights
for a volume of Pilbara Blend (into which Channar ore feeds)
equivalent to Channar production.
Sinosteel Corporation is considered to be a related party of Rio
Tinto plc under UK Listing Authority rules. This extension of the
Channar joint venture is a smaller related party transaction,
falling within UK Listing Authority listing rule 11.1.10R.
To ensure that the extension of the Channar joint venture falls
within the UK Listing Authority's 'smaller related party
transactions' regime (under listing rule 11.1.10R), the production
royalties are subject to a maximum cap of US$250 million, which is
believed to provide significant headroom over a wide range of iron
ore price scenarios.
Contacts
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Kingdom Jonathan Rose
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Rio Tinto plc Rio Tinto Limited
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London SW1Y 4AD Melbourne 3000
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T +44 20 7781 2000 T +61 3 9283 3333
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This information is provided by RNS
The company news service from the London Stock Exchange
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