Rio Tinto in tie-up Iron Ore Holdings

24th Nov 2009 07:26

Mining giant Rio Tinto has entered into an agreement with a smaller peer in Australia's Pilbara region to buy iron ore from the company and to examine one of its deposits with a view to possibly buying it.Under the agreement, Rio will have 1.5m tonnes of iron ore a year delivered by Iron Ore Holdings (IOH), which it will then transport to the coast for processing. It has also entered into an exclusive agreement that to examine IOH's iron ore deposit situated near one of Rio's operations, that may lead to the purchase of part or all of the lease covering the deposit. 'This is a significant development for Rio Tinto, IOH and the Pilbara generally,' said Rio's iron ore chief executive Sam Walsh. 'It is a prime example of how a major established producer and a small, progressive junior can work together to achieve an excellent outcome for all stakeholders.'He continued: 'Rio Tinto welcomes the opportunity to also examine the larger Iron Valley deposit and establish whether it can be best developed within our integrated system of 11 mines, 1,300-kilometre rail network and three ports in two locations.'