REG - Rio Tinto - Rio Tinto and Sinosteel extend Channar Mining JV <Origin Href="QuoteRef">RIO.L</Origin>

Rio TintoAnnouncement

24/11/2017 07:00

RNS Number : 4127X
Rio Tinto PLC
23 November 2017
Rio Tinto and Sinosteel extend Channar Mining Joint Venture
24 November 2017
Rio Tinto and China's Sinosteel Corporation have agreed to extend their historic Channar Mining Joint Venture.
This third extension of the joint venture, confirmed in Beijing by Rio Tinto chief executive J-S Jacques and Sinosteel chairman Xu Siwei, will see an additional 10 million tonnes of iron ore delivered into the joint venture from Western Australia. 
Rio Tinto Iron Ore chief executive Chris Salisbury said "The Channar joint venture is one of Australia's most significant trading partnerships and has helped pave the way for the incredibly strong relationship we have forged with China today. This extension represents another milestone in our 30-year partnership that has seen more than 250 million tonnes of iron ore delivered from the Pilbara to China." 
The extension will see Sinosteel make an upfront payment of US$15 million to Rio Tinto as well as production royalties linked to the iron ore price. It is conditional upon approvals from the Western Australian, Australian and Chinese governments. 
The original Channar joint venture was signed in 1987 and provided for the production of 200 million tonnes of iron ore. This third extension will increase the life of the joint venture to cover production totalling 290 million tonnes. 
Notes to editors 
The Channar joint venture (Rio Tinto share 60 per cent, Sinosteel share 40 per cent) owns the Channar mine in the Pilbara region of Western Australia. The mine is managed by Rio Tinto and the joint venture agreement provides Sinosteel with off-take rights for a volume of Pilbara Blend (into which Channar ore feeds) equivalent to Channar production. 
Sinosteel Corporation is considered to be a related party of Rio Tinto plc under UK Listing Authority rules. This extension of the Channar joint venture is a smaller related party transaction, falling within UK Listing Authority listing rule 11.1.10R. 
To ensure that the extension of the Channar joint venture falls within the UK Listing Authority's 'smaller related party transactions' regime (under listing rule 11.1.10R), the production royalties are subject to a maximum cap of US$250 million, which is believed to provide significant headroom over a wide range of iron ore price scenarios.
Contacts
media.enquiries@riotinto.com
riotinto.com 
 Follow @RioTinto on Twitter

Media Relations, United Kingdom
Illtud Harri
T +44 20 7781 1152
M +44 7920 503 600
David Outhwaite
T +44 20 7781 1623
M +44 7787 597 493
David Luff
T +44 20 7781 1177
M +44 7780 226 422
Investor Relations, United Kingdom
John Smelt
T +44 20 7781 1654
M +44 7879 642 675
David Ovington
T +44 20 7781 2051
M +44 7920 010 978
Nick Parkinson
T +44 20 7781 1552
M +44 7810 657 556
Media Relations, Australia
Jonathan Rose
T +61 3 9283 3088
M +61 447 028 913
Jesse Riseborough
T +61 8 62116013
M +61 436 653 412
Investor Relations, Australia
Natalie Worley
T +61 3 9283 3063
M +61 409 210 462
Rachel Storrs
T +61 3 9283 3628
M +61 417 401 018


Rio Tinto plc
6 St James's Square
London SW1Y 4AD
United Kingdom
T +44 20 7781 2000
Registered in England 
No. 719885
Rio Tinto Limited
Level 7, 360 Collins Street
Melbourne 3000
Australia 
T +61 3 9283 3333
Registered in Australia
ABN 96 004 458 404

This information is provided by RNS
The company news service from the London Stock Exchange
  END
STRFMMZMMFVGNZZ