Posted in | News | Iron Ore | Mining Business | Mining Infrastructure

Rio Tinto Facing Problems with Iron Ore Deals

By Joel ScanlonJun 29 2010

Rio Tinto seems to be facing problems with alliances and proposed alliances everywhere. A proposed iron ore venture with BHP Billiton Ltd may be voted down by the Rio Tinto Group shareholders as they do not agree to the current terms of payment.

BHP Billiton has agreed to pay Rio $5.8 billion to equalize the contribution of assets to the venture. The 50/50 partnership between the second largest and third largest iron ore exporters in the world is being opposed by steelmakers in Europe and Asia.

The two companies plan to share mines, railroads, ports and workforces in Western Australia to help save $10 billion in the joint venture. The deal is yet to meet with regulatory approval. Another agreement with Kerry Stokes’ Iron Ore Holdings Ltd. with Rio Tinto Ltd. is also in jeopardy.

Iron Ore Holdings was under an agreement to sell Rio Tinto iron ore worth 1.5 million tonnes from its Phils Creek project in Western Australia’s Pilbara region. While the agreement was signed in last December the two parties have been unable to agree to the terms of access. If they do not have an understanding by August 8, 2010 the sales agreement will terminate.

Written by

Joel Scanlon

Joel relocated to Australia in 1995 from the United Kingdom and spent five years working in the mining industry as an exploration geotechnician. His role involved utilizing GIS mapping and CAD software. Upon transitioning to the North Coast of NSW, Australia, Joel embarked on a career as a graphic designer at a well-known consultancy firm. Subsequently, he established a successful web services business catering to companies across the eastern seaboard of Australia. It was during this time that he conceived and launched News-Medical.Net. Joel has been an integral part of AZoNetwork since its inception in 2000. Joel possesses a keen interest in exploring the boundaries of technology, comprehending its potential impact on society, and actively engaging with AI-driven solutions and advancements.

Citations

Please use one of the following formats to cite this article in your essay, paper or report:

APA
Scanlon, Joel. (2019, March 19). Rio Tinto Facing Problems with Iron Ore Deals. AZoMining. Retrieved on December 03, 2024 from https://www.azomining.com/News.aspx?newsID=73.
MLA
Scanlon, Joel. "Rio Tinto Facing Problems with Iron Ore Deals". AZoMining. 03 December 2024. <https://www.azomining.com/News.aspx?newsID=73>.
Chicago
Scanlon, Joel. "Rio Tinto Facing Problems with Iron Ore Deals". AZoMining. https://www.azomining.com/News.aspx?newsID=73. (accessed December 03, 2024).
Harvard
Scanlon, Joel. 2019. Rio Tinto Facing Problems with Iron Ore Deals. AZoMining, viewed 03 December 2024, https://www.azomining.com/News.aspx?newsID=73.