Rio Tinto Entered into Joint Venture Agreement with Chin Baowu Steel Group
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Update time : 2022-09-16 20:45:15
Rio Tinto announced that it has entered into a joint venture with China Baowu Steel Group Co. Ltd in connection with the development of the Western Range iron ore project in the Pilbara, Western Australia. The mining major will hold 54% share in the joint venture. The joint venture will invest approximately $2 billion in the development of the mine The project comprises construction of a primary crusher and an 18 kilometre conveyor system linking it to the existing Paraburdoo processing plant. The construction is expected to begin early next year, with first production anticipated in 2025. The construction phase will generate approximately 1,600 jobs. The joint venture partners have also entered into an iron ore sales agreement at market prices covering
a total of up to 126.5 million tonnes of iron ore over a period of approximately 13 years. Simon Trott, Chief Executive, Rio Tinto Iron Ore noted that the project is a very significant milestone for both Rio Tinto and Baowu. The development of Western Range represents the commencement of the next significant phase of investment in its iron ore business. At the same time, the two companies will continue to work together on low-carbon steelmaking research, he added.
