Rio Tinto reaches an agreement with its Japanese partners
According to statement released from Anglo-Australian
Rio Tinto, the company has recently reached an agreement with its Japanese partners Mitsui
Iron Ore Development, Sumitomo Metal Industries and Nippon Steel for a cooperation between its
iron ore division Hamersley Iron and its joint venture Robe River Mining Company in Pilbara region of Western
Australia.
As recently reported by SteelOrbis,
Rio Tinto was planning to revamp its two divisions, which brougth their merger on the agenda. However, in line with the recent agreement, the two divisions may act independently in control of their businesses, moreover the existing separate structures of both Hamersley and Robe will continue.
Both divisions will not merge, however they will share rail infrastructure, use other infrastructures, such as port and power commonly and coorperate in the management of noninfrastructure assets.
It is also stated that new entities will be established, collectively named as Pilbara Iron, which will be in charge of operating rail, port, power and noninfrastructure assets of the two divisions.
The finalization of the agreement is subject to government's approval.