Rio Tinto in 19% price increase for iron ore

Thursday, 18 May, 2006 - 15:38

Rio Tinto's Hamersley Iron has today reached agreement with major Japanese Steel Mills on a 19 per cent price increase for its fine iron ore deliveries from April 1, 2006.

Sam Walsh, Chief Executive of Rio Tinto's Iron Ore Group, said, "This year's pricing reflects the current international market, which is characterised by extremely tight supply and a continuing high level of demand."

As previously reported, Brazilian miner Companhia Vale do Rio Doce, the world's biggest iron ore producer, has agreed to a 19 per cent increase in contract prices for iron ore fines with German steelmaker ThyssenKrupp AG.