Rio Tinto subsidiary Hamersley Iron has reached agreement with Japan’s Nippon Steel on the price for Hamersley iron ore deliveries for the contract year commencing April 1, 2009. The new prices are: Pilbara Blend and Yandicoogina Fines, both $0.97/t (dry), down from $1.4466 in 2008 and Pilbara Blend Lump, $1.12/t (dry), down from $2.0169.

Rio Tinto Iron Ore Chief Executive, Sam Walsh said: “Rio Tinto is pleased to reach this agreement today with Nippon Steel, Japan’s leading steelmaker. We believe this settlement is a realistic outcome for both parties – one that reflects the global market for iron ore and the current challenging market conditions facing our customers.”