Rio wins massive iron ore price rises

Rio Tinto has reached agreement with all of its customers in Asia for iron ore deliveries from Hamersley Iron, Robe River and Hope Downs for the contract year commencing April 1 2008. The new settlements are in line with Hamersley Iron’s Baosteel settlement, which saw lump prices increase by 96.5% and fines prices increase by 79.88%.

Sam Walsh, Chief Executive of Rio Tinto’s Iron Ore group, said: “These agreements are a strong endorsement of the settlement reached last week and reflect the very strong demand for our products across the world’s fastest growing markets. The agreements throughout Asia will provide an important platform as we embark on the largest expansion in Rio Tinto Iron Ore’s history, increasing production from the Pilbara to 320 Mt/y of iron ore in 2012 and 420 Mt/y beyond that.”