Australian miner
Rio Tinto has announced its intention to advance discussions on a second extension for the Channar
iron ore mining joint venture (JV) with China-based Sinosteel in the
iron ore-rich Pilbara region of Western
Australia.
The original Channar joint venture was signed in 1987 and provided for the production of 200 million mt of
iron ore. It was extended in 2010 to produce a further 50 million mt of
iron ore,
as previously reported by SteelOrbis.
With
Rio Tinto's share at 60 percent and Sinosteel share's at 40 percent, the Channar JV owns the Channar mine, located 60 kilometers south of Tom Price, which is managed by
Rio Tinto. The agreement provides Sinosteel with 100 percent take-off rights to Channar joint venture production.
According to
Rio Tinto, the timetable for reaching a mutually acceptable agreement for a second extension is before the end of the current extension term, which is currently expected to be during 2016.