London, England — MININGREVIEW.COM — 24 November 2009 – Rio Tinto “’ the leading international mining group headquartered in the United Kingdom “’ has welcomed the agreement reached with Australian based and listed Iron Ore Holdings (IOH), enabling the sale of ore from IOH’s Phil’s Creek deposit to Rio Tinto under an innovative mine-gate sale process.
Announcing this here, Rio Tinto Iron Ore chief executive Sam Walsh said that in terms of the agreement up to 1.5 million tonnes would be delivered annually to Rio Tinto, who would then transport it to the coast for shipment as part of Rio Tinto’s product suite.
His statement added that Rio Tinto had also agreed to enter an exclusive agreement with IOH to examine its Iron Valley deposit, situated approximately 10km NE from Rio Tinto’s Yandicoogina operation. This agreement could lead to the purchase of part or all of the lease covering the deposit.
“This is a significant development for Rio Tinto, IOH and the Pilbara generally,” said Walsh. “It is a prime example of how a major established producer and a small, progressive junior can work together to achieve an excellent outcome for all stakeholders,” he added.
”Without this deal, the benefits flowing from the development of the isolated Phil’s Creek deposit would be denied to the respective shareholders and to the community of Western Australia,” Walsh pointed out.
“Rio Tinto welcomes the opportunity to also examine the larger Iron Valley deposit, and to establish whether it can be best developed within our integrated system of 11 mines, a 1 300 km rail network and three ports in two locations,” he added.