Anglo-Australian mining giant Rio Tinto has agreed to sell its first cargo of iron ore from its mines to India, marking a strategic breakthrough in sales to the Asian country.
The cargo in question, destined for large Indian steelmaker Essar Steel, consists of 160,000 metric tons of Rio's Pilbara Blend Fines and will load from Rio's Pilbara operations in Western Australia and be shipped to India in December.
"This is only one shipment at this stage but this is very significant in terms of forging a relationship with Essar, and potentially opening doors," Rio Tinto iron ore chief executive Sam Walsh told reporters.
Essar Group, one of India's largest steel producers, is in process of commissioning new facilities aimed at increasing its steel production capacity from 4.6 million metric tons to 10 million metric tons.