Rio Tinto extends Australia iron ore partnership with Sinosteel
Rio Tinto and Sinosteel Corporation have agreed a $45 million extension to their historic Channar Mining Joint Venture in Australia’s Pilbara region.
The Channar joint venture extension, together with a separate agreement for Rio Tinto to supply iron ore from the Pilbara, will enable sales of up to 70 million tonnes of iron ore to Sinosteel Corporation over the next five years.
This extension will see 30 million tonnes of iron ore supplied into the joint venture, with Sinosteel making a one-off payment of $45 million to Rio Tinto and providing additional production royalties linked to the iron ore price.
In a separate agreement, Rio Tinto will sell up to 40 million tonnes of iron ore to Sinosteel between 2016 and 2021.
In a ceremony witnessed by Australian Prime Minister Malcolm Turnbull and Chinese Premier Li Keqiang at the Great Hall of the People in Beijing, Rio Tinto Iron Ore chief executive Andrew Harding and Sinosteel Corporation Ltd president Liu Andong signed the Channar agreement, officially extending the long-established relationship between both companies until the end of the decade.
Harding said: “In the 50 years that we have been exporting iron ore from the Pilbara, the Channar joint venture stands out as one of the most important deals not only for our business, but for Australia’s economic ties with China. Now in its 30th year, it is one of the longest running and most successful partnerships between the two nations.
“We place immense value on our long-term customer relationships and today’s agreements clearly demonstrate that Rio Tinto and Sinosteel remain committed to our mutually beneficial partnership.”
Liu Andong added: “The Channar Mining Joint Venture was the first large-scale mining initiative between our two countries and is a cornerstone of Chinese and Australian trade. The extension of the joint venture marks another milestone in trade cooperation, especially in the current economic climate.
“The relationship between Sinosteel and Rio Tinto has demonstrated the ability of our companies and both nations to sustain significant long-term joint commercial activities for the benefit of all concerned.”
The joint venture extension is subject to certain conditions precedent being met, including West Australian, Australian and Chinese Government approvals.
BHP, Rio Tinto & Vale launch Charge On Innovation Challenge
Mining giants BHP, Vale and Rio Tinto have launched the 'Charge On' Innovation Challenge to solve one of the biggest challenges the industry faces today - decarbonising mining operations.
'Charge On' Innovation Challenge
In partnership with Austmine, Australia's leading mining equipment, technology and services industry association, founding patrons BHP, Vale and Rio Tinto have launched the competition to encourage technology innovators to develop new concepts for large-scale haul truck electrification systems. The main goal is cutting emissions from surface mining operations.
“The mining industry needs to be at the forefront of tackling the climate challenge. The Charge On Innovation Challenge is a great example of the current collaborative work being done by the mining industry and mobile equipment manufacturers to decarbonise mining fleets,” the trio said in a media statement.
“In addition to providing a zero-carbon energy source, the conversion of mobile mining equipment to battery-electric can potentially unlock value, as electric motors have fewer moving parts when compared to standard equipment.”
A number of non-traditional mining sector vendors are actively developing technologies that can assist in mine electrification. By submitting a Challenge to the market, the Patrons of Charge On expect to:
- Demonstrate there is an emerging market for charging solutions in mining
- Accelerate commercialization of solutions
- Indicate to suppliers, the mining industry seeks interoperable solutions
- Maintain multiple actors and competition in the supply chain
- Integrate innovations from other sectors into the mining sector
"We expect some solutions identified in the Challenge could provide propulsion to existing diesel-electric trucks. This may present a pathway to early implementation for dynamic charging solutions," the trio said.
Found patrons BHP, Vale and Rio Tinto are pledging their commitment to fighting climate change:
"The mining industry has an important role to reduce emissions and do our part to achieve the Paris Agreement goals to limit the impacts of climate change."
The Charge On Innovation Challenge asks vendors to present interoperable solutions that can safely deliver electricity to large battery-electric off-road haul trucks in a way that maintains or improves current productivity levels. Specifically, mechanisms capable of delivering in the order of 400kWh of electricity to each truck within a haul cycle (ie load, travel, dump, return, queue). The delivered electricity is to charge a battery, and if applicable directly propel the truck.
Austmine CEO Christine Gibbs Stewart commented: “We expect the Challenge will attract companies from a broad range of sectors including mining, automotive, aerospace, agriculture, and defence to deliver selected charging concepts to create a standard product that can interface with all trucks."
More information about the challenge will be released on May 18.
The competition echoes growing efforts being made across the industry to tackle emmissions and promote electrification. In march this year, the Electric Mine Consortium was launched. It's founding members include Gold Fields, Dassualt Systemes and Sandvik who pledged their commitment to decarbonising mining operations.