Rio extends Pilbara mine JV with Sinosteel

AAP
Rio extends Pilbara mine JV with Sinosteel

Rio Tinto will supply China's Sinosteel with 70 million tonnes of iron ore over the next five years after extending the companies' joint venture in Western Australia.

Sinosteel will pay a one-off $US45 million ($A58.50 million) fee as well as additional production royalties linked to the iron ore price.

The extension is the second to their 29-year-old joint venture at the Channar Mine in the Pilbara region, which will account for 30 million tonnes of the ore.

The remainder will come from a new agreement under which Rio will supply up to 40 million tonnes by 2021.