Rio Tinto Sign Long Term Iron Ore Supply Deal with Major Korean Steel Maker

Rio Tinto and its joint venture partners have sealed long-term contracts to supply iron ore to Hyundai Steel, under which more than 40 million tonnes of iron ore from the Pilbara will be exported to the Korean producer over the next decade.

Hyundai Steel is Korea’s second largest steel maker and the world’s second largest electric arc furnace (EAF) producer.

Under the contracts, Hamersley Iron, Robe River and Hope Downs will commence shipments in 2009 ramping up to an annual total of 4.6Mt from 2012 to 2019.

Sam Walsh, chief executive of Rio Tinto Iron Ore, said the agreements marked the next stage in a relationship that had endured through most of the lifespan of the Pilbara iron ore industry. “Rio Tinto has enjoyed a long relationship with Korea, going back to our first shipment in 1973. These agreements with Hyundai Steel are the culmination of several years’ negotiations and open the next chapter in what has been a successful, mutually rewarding partnership.”