Rio awards $200m deal to indigenous JV

18th Dec 2009 07:34

Rio Tinto has awarded a new mining contract in its Pilbara iron ore operations to a joint venture between native title holders the Eastern Guruma and mining services company NRW.The group said the $200m deal to build, mine and transport iron ore from Rio Tinto's Western Turner Syncline deposit is the first significant mining joint venture for the Eastern Guruma people. NRW and Eastern Guruma will build a haul road and truck the ore 15 kilometres to the Tom Price mine for processing and blending with other Pilbara Blend stocks. Required regulatory approvals are being finalised and production is expected to start in July 2010, Rio added.The four-year contract has been designed to increase Eastern Guruma equity in the joint venture from 25 to 35% as the group builds capacity in mining services.