Australian mining giant
Rio Tinto has recently announced that its subsidiary Hamersley Iron opened a new
iron ore mine called Eastern Range near Paraburdoo in the Pilbara region of Western
Australia. Hamersley Iron holds 54% stake in the new mine, which will enable the unit to become the leading supplier of
iron ore to
China. The other 46% share of the mine belongs to Chinese mill Shanghai
Baosteel Group Corporation. The initial investment for the mine is $64 million.
According to the joint venture agreement, Hamersley will supply 10 million tons of
iron ore to
Baosteel annually, totaling 200 million tons over 20 years. With the agreement,
Baosteel will have a stable source of high grade
iron ore in return Hamersley will have guaranteed
iron ore sales over 20 years.