Rio Tinto and Chinalco to form joint venture for exploration in China
Rio Tinto and Chinalco today signed a non binding Memorandum of Understanding (MoU) to establish a landmark exploration joint venture (JV) in China.
The JV will explore mainland China for world-class mineral deposits and is expected to come into operation in the first half of next year. It is intended that between three and five large area exploration projects will be selected for initial focus by the JV, with the potential for additional regions to be added at a later date.
Chinalco will hold a 51 per cent interest in the JV and Rio Tinto will hold a 49 per cent interest.
Rio Tinto chief executive Tom Albanese said: "This exploration JV is the latest chapter in the rich history of partnerships between Rio Tinto and China. The combination of skills provided by Rio Tinto and Chinalco offers great potential to unlock value for mutual benefit."
Chinalco president Xiong Weiping said: "Against the backdrop of the globalisation of resources supporting the globalisation of the world economy, for both sides to build on our respective strengths and establish an exploration JV is a win-win measure that will deepen our cooperation and meet the challenges of the market".
Mr Albanese and Mr Xiong attended a special MoU signing ceremony at the Diaoyutai State Guesthouse in Beijing. Rio Tinto's Executive Committee, senior Chinalco executives and Chinese Government officials were also present.
Chinalco's expertise and deep understanding of the Chinese environment will complement Rio Tinto's application of world-leading technologies and experience in operating global mining projects.
Rio Tinto will appoint the chief executive of the exploration JV, with the chairman of the five-member Board nominated by Chinalco.
About Rio Tinto
Rio Tinto is a leading international mining group headquartered
in the UK, combining Rio Tinto plc, a London and NYSE listed
company, and Rio Tinto Limited, which is listed on the Australian
Securities Exchange.
Rio Tinto's business is finding, mining, and processing mineral resources. Major products are aluminium, copper, diamonds, energy (coal and uranium), gold, industrial minerals (borax, titanium dioxide, salt, talc) and iron ore. Activities span the world but are strongly represented in Australia and North America with significant businesses in South America, Asia, Europe and southern Africa.
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03 December 2010
Rio Tinto and Sinosteel announce extension of historic Channar Mining Joint Venture
Rio Tinto Limited and Sinosteel Corporation 中国中鋼集団today announced the extension of their Channar Mining joint venture (JV) in the Pilbara region of Western Australia, leading the way for a further 50 million tonnes of iron ore to be produced under this ground-breaking joint venture.
The extension of the agreement was sealed at a special signing ceremony at the Diaoyutai State Guesthouse in Beijing. Senior executives from Rio Tinto and Sinosteel, Chinese Government officials and the Australian Ambassador to China attended the event.
The original Channar agreements for the production of 200 million tonnes were signed in 1987, with strong Australian and Chinese Government support. This marked an historic breakthrough as the first major Chinese foreign investment in the Australian mining industry, with first ore being produced in 1990.
Rio Tinto chief executive Iron ore and Australia, Sam Walsh described the achievement as the latest milestone in Rio Tinto's long history of close ties with China, now its largest single market.
"Rio Tinto first sent a shipment of iron ore from the Pilbara to China in 1973, and the proven strength of a mutually rewarding partnership built on those early days has stood the test of time, as now reflected in this extension of the Channar agreement," Mr Walsh said.
Huang Tianwen, President of Sinosteel Corporation, remarked that Sinosteel initiated the industrial cooperation between China and Australia through the Channar Mining Joint Venture, which, as one of the earliest and largest investments made by Chinese companies in Australia, has made major contributions to the marketing of Australian iron ore in China and the prosperity of the local economy.
Mr Huang said: "Channar iron ore enjoys a high reputation in the Chinese market. The long-term friendly cooperation between Sinosteel and Rio Tinto has become a model for Sino-Australian economic interaction and the signing of the Channar Mining Joint Venture Extension Agreement has significant meaning for the further development of Sino-Australian economic relations."
The Channar JV (Rio Tinto share 60 per cent, Sinosteel share 40 per cent) owns the Channar mine, 60 kilometres south of Tom Price, which is managed by Rio Tinto. The agreement provides Sinosteel with 100 per cent take-off rights for Pilbara Blend product (into which Channar ore feeds).
Channar（チャナー）鉱山は西オーストラリア州のPilbara（ピルバラ）地域にある鉄鉱山。同州の都市Tom Price（トム・プライス）の南、Paraburdoo（パラバードー）鉄鉱山の近隣にある。
英国・オーストラリアの資源大手Rio Tinto（リオ・ティント）の完全子会社Hamersley Iron（ハマスレー）と、中国の鉄鋼大手である中国中鋼集団（Sinosteel）とのJV。
Channar鉄鉱山から生産される鉄鉱石は近隣のParaburdoo鉱山の処理施設へ運ばれる。年間鉄鉱石生産能力はChannar、Paraburdoo、Eastern Range鉄鉱山合わせて2000万トン。Pilbara Blend products include contributions from mines at Tom Price, Paraburdoo, Channar, Eastern Ranges, Marandoo, West Angelas, Brockman2 and Nammuldi and Hope Downs 1.
At the current production rate of 10 million tonnes a year, it is expected the 200 millionth tonne of the original joint venture will be produced in the first quarter 2012.
Rio Tinto and Sinosteel also signed a strategic cooperation framework agreement for potential cooperation in, and joint development of, iron ore opportunities within or immediately surrounding the Channar mine.
Sinosteel Australia has 40% interests of the Channar Joint Venture which is formed in 1987 between Hamersley Iron Pty Ltd and Sinosteel Channar Pty Ltd, a wholly owned subsidiary of Sinosteel Australia Pty Ltd.
Over the life of the joint venture it will produce 200 million tonnes of high grade iron ore. The joint venture project commenced production on the 1st of January 1990 with approx. 3.5 million tonnes produced in its first year and quickly reached its designed capacity of 10 million tonnes in 1998. By the end of 2005 the total production had reached 131 million tonnes in which all was being sold to the Chinese market through Sinosteel Corporation.
At the time of the Channar Joint Venture commencement it was the biggest overseas investment between China and Australia and until today remains one of the largest Chinese overseas investment projects. The project received considerable attention and strong support from both Australian and Chinese Governments this included Chinese Government officials such as Hu Yaobang, Li Peng, Zhu Rongji, Liu Qi and many other leaders who visited Channar and gave their full support and appreciation for the project, which will continue to be an important cooperation between Australia and China at both trade and government levels.
Channar is the first overseas mineral resource project entered into by a Chinese enterprise. Its commissioning provides a stable supply of Iron Ore for the Chinese metallurgical industry which is contributing to improving the development of this industry in China. Due to China’s unprecedented economic growth the West Australian iron ore industry is also enjoying the tangible results. Due to the increasing industrialisation in China and the need for developing global resources, Sinosteel Australia Pty Ltd has been looking at many resource projects since 2005 and have held discussions on various potential projects involving both product off-take and equity investment. Our main focus is on Iron ore, Manganese, Nickel, Coking Coal and Mineral Sands and non-ferrous base metals. The increasing interest in uranium has also resulted in investigations in uranium projects during this period. Sinosteel Australia Pty Ltd is seeking further opportunities to invest in the mining & resources sector in Australia and invites potential companies to contact us to develop, market and trade Iron Ore, Chrome Ore, Manganese, Coking Coal, Scrap Steel, Copper, Lead and Zinc into China. For all enquires please contact Sinosteel Australia Pty Ltd, email: sinosteel@sinosteel.com.au.
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2010-12-03
Rio Tinto, Chow Tai Fook Jointly Explore China Diamond Market
周大福
Rio Tinto will work with Hong Kong retailer Chow Tai Fook Jewelry to explore China’s diamond market, reports the National Business Daily. Chow Tai Fook general manager Huang Shaoji said the two parties will focus on the extremely valuable pink diamond.
Rio Tinto, the world’s largest natural colored diamond supplier, began supplying diamonds to Chow Tai Fook in 2001.
Publicly available data shows that China is currently the second-largest diamond importer in the world. According to Rio Tinto’s 2010 Interim Report, the company earned $75 million from its diamond business, a marked improvement over last year’s $6 million loss.
International diamond demand grew at an annual rate of 10 percent over the last 15 years, while no new diamond mines were discovered, resulting in 3-5 percent annual growth in diamond retail prices. Existing reserves of proven diamonds will be consumed in 25 years at current annual output of 100 million carats.
Rio Tinto 2010 /12/1
Rio Tinto today confirmed the important role China will play in the long term sales and marketing strategy for its diamonds portfolio. Speaking at the 2010 China Diamond Conference in Shanghai, Jean-Marc Lieberherr, general manager for the sales and marketing of all diamonds from Rio Tinto's mines commented, “Diamonds have a small but important position in Rio Tinto’s diverse portfolio and attract much attention because of their growth potential. We see China playing an important role in that growth.”
Rio Tinto recently launched its strategic partnership with leading retailer Chow Tai Fook to develop a fashion jewelry category, separate to the existing bridal market in China. Chow Tai Fook's superior expertise in the design, manufacture and retailing of diamond jewellery in China, along with Rio Tinto's world class diamond productions, makes for a natural alliance.
Lieberherr highlighted the fact that China has entered a fast growth stage which will change the face of the diamond jewelry market. “The emerging middle class demographic in China is an ideal entry point for affordable diamond jewelry. Increasingly Chinese consumers will be seeking to differentiate themselves through fashion and fashion jewellery and this will be the driver of future growth in retail diamond jewellery demand.”
