On December 3, Anglo-Australian mining goliath Rio Tinto Limited and Chinese steelmaker Sinosteel Corporation announced the extension of their Channar mining joint venture (JV) in the iron ore-rich Pilbara region of Western Australia, to produce a further 50 million mt of the resource.
A Rio Tinto statement recalled that the original Channar agreements for the production of 200 million mt were signed in 1987, with strong Australian and Chinese government support. Rio Tinto chief executive iron ore and Australia Sam Walsh described the JV extension as the latest milestone in Rio Tinto's long history of close ties with China, now its largest single market.
With Rio Tinto's share at 60 percent and Sinosteel share's at 40 percent, the Channar JV owns the Channar mine, 60 kilometers south of Tom Price, which is managed by Rio Tinto. The agreement provides Sinosteel with 100 percent take-off rights for Pilbara Blend product into which Channar ore feeds.
At the current production rate of 10 million mt a year, it is expected that the 200 millionth mt of the original joint venture will be produced in the first quarter of 2012.