Rio expecting tough negotiations on iron ore price

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

30 May 2009

Rio Tinto says it expects iron ore price negotiations with the Chinese to drag on. The miner's Chief Executive, Tom Albanese, and iron ore chief, Sam Walsh, have been in the Pilbara touring the automated mining system its West Angelas site.
Both men have refused to answer questions on the $19.5 billion deal with Chinese company Chinalco.
The deal would give Chinalco an 18 per cent stake in the company and 15 per cernt ownership of the Hamersley iron ore mine.
Earlier this week Rio negotiated a 37 per cent reduction in the benchmark price of iron ore with Japanese and Korean steelmakers.
Mr Walsh says the negotiations with the Chinese are continuing.
"These negotiations are tough each year," he said.
"I think that the process is becoming somewhat more transparent through some of the rhetoric.

Source: ABC News