Nippon Steel and Rio Tinto agree on comprehensive alliance
According to the statement released from Japanese steel maker Nippon Steel Corporation, the company will sign an agreement with Australian Rio Tinto for the acquisition of interests and joint development of Australian mines of iron ore and coking coal. Moreover, the agreement includes long-term contracts for supply of raw materials, cooperation in marine transport and technical support exchanges. An official from Nippon Steel stated that the agreement will provide the company with a stable raw material source. Nippon Steel's acquisition of interest in mines will be through Nippon Steel Australia Pty Ltd. Total cost of purchasing and jointly developing mines in Australia with Rio Tinto is stated to amount Yen 20 billion ($189 million). Moreover, Nippon Steel will acquire 47% stake in Beasley River mine and it will support expansion of Rio Tinto's Yandi mine. In line with this, a contract of 20 years for the supply of 150 million tons of iron ore will be signed. Nippon Steel also will have 8% stake in Hail Creek coal mine and a separate contract of 15 years for the supply of 30 million tons of coal will be signed. After evaluation of the details of the agreement and the terms, a definitive agreement will be signed.