Rio Tinto and Chinese company Sinosteel have agreed to extend their Channar Mining Joint Venture (JV) for the third time.

The latest extension will see the delivery of an additional ten million tonnes of iron ore to the JV 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.”

As part of the agreed extension, Sinosteel will make an upfront payment of $15m to Rio Tinto, in addition to production royalties that are linked to the iron ore price.

“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.”

It is conditional upon approvals from the governments of Australia, China, and Western Australia.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Signed in 1987, the original Channar JV provided for the production of 200 million tonnes of iron ore. It was extended in 2010 to produce a further 50 million tonnes of iron ore.

In April last year, the companies extended their JV for the second time.

With this third extension, the life of the JV will be increased to cover production totalling 290 million tonnes.

Rio Tinto owns a 60% stake in the Channar JV, while the remaining 40% is held by Sinosteel. The JV owns the Rio Tinto-managed Channar mine in the Pilbara region of Western Australia.

The agreement provides Sinosteel with off-take rights for a volume of Pilbara Blend equivalent to Channar production.