Rio Tinto Limited
(ASX:RIO) and China’s Sinosteel Corporation are considering a second extension to the Channar Mining iron ore joint venture in Western Australia’s Pilbara region.
Both groups have announced their intention to advance talks for the extension following a signing of a Heads of Agreement in Canberra.
The signing was attended by Chinese President Xi Jinping and Australian Prime Minister Tony Abbott who themselves inked a free trade agreement between both nations.
Rio Tinto CEO Sam Walsh says the Channar joint venture was signed in 1987 and is now one of China’s longest running and most successful partnerships with Australia.
The JV’s first extension in 2010 is expected to end in 2016 by which time a mutually acceptable agreement for a second extension will be considered.
Rio Tinto reported a net profit of $4.54 billion in the first half of the 2014 calendar year.
