Rio
Tinto and China Baowu Group have agreed to discuss extending the Bao-HI
iron ore joint venture in Western Australia’s Pilbara region which has
achieved sales of more than 180 million tonnes since it was created in
2002.
A
heads of agreement was signed at a ceremony in Shanghai attended by
executives from both Rio Tinto and Baowu. The agreement reinforces Rio
Tinto's partnership with Baowu, recognising the significant expertise
and knowledge both parties bring to the joint venture.
Rio
Tinto Iron Ore chief executive Chris Salisbury said “The signing of this
agreement is a significant milestone in the partnership between Rio Tinto
and Baowu that extends back more than four decades and was enhanced with
the creation of the Bao-HI JV. The success of this relationship has
contributed to the growth of both our organisations over many years and is
one which continues to develop and strengthen over time.”
The
JV pertains to the Eastern Ranges mine and Western Range project in the
Pilbara. Rio Tinto has commenced a pre-feasibility study in to the Western
Range project which is expected to be completed by the end of 2019.
Notes to
editors
Rio Tinto’s first ever shipment to China in 1973 was delivered to the
Shanghai No. 1 steel mill, now part of China Baowu Group.
China
Baowu Steel Group Corporation, was established in 2016 following the
consolidation of Baosteel Group Corporation and Wuhan Iron & Steel
(Group) Corporation. It is now the world’s second-largest steel company
by capacity and is Rio Tinto’s largest Chinese customer.
Rio
Tinto owns 54 per cent of the Bao-HI JV with the remaining 46 per cent
held by China Baowu Group.
source:
Rio Tinto
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