Mining group Rio Tinto said June 23 that it had agreed a near doubling of the price of its iron ore sales to Chinese steel maker Baosteel. Prices are to increase by 80%-97% depending on the category of iron ore.
"Rio Tinto Iron Ore subsidiary Hamersley Iron has today reached agreement with Chinas Baosteel on the price for Hamersley iron ore deliveries for the contract year commencing 1 April 2008," said a statement issued by Rio Tinto. A spokesman for Rio Tinto said the deal was "very significant," as iron ore is one of the three main drivers of Rio Tinto's earnings, along with copper and aluminum.
"The increase is higher than the 71% and 65% settlements announced by Brazilian mining giant Vale earlier in the year, reflecting both the strength of the market and an indication of the proximity of Rio Tinto's iron ore to its customers," the spokesman added.
Copyright Agence France-Presse, 2008