Media release

Friday, 25 June 2004 - MVT50/2004

Australia Resourcing China's Economic Boom

Trade Minister Mark Vaile today welcomed Rio Tinto's announcement of more long-term, high-value resources deals.

The deals will see Rio's 100 per cent-owned Hamerlsey Iron and 53 per cent-owned Robe River Joint Venture supply an additional 40 million tonnes a year of iron ore under long term contracts over the next 10 years to major Chinese steel mills – worth around $15 billion.

"I congratulate Rio Tinto, Hamersley Iron and the Robe River Joint Venture on this tremendous result," Mr Vaile said.

"Wins like these do not come about without sustained effort and commitment. In this vein, Rio Tinto has a history of working with China stretching back three decades – over which time it has developed deep partnerships with 10 of China's largest steel producers.

"This tremendous achievement coming on the back of BHP Billiton's recent $12 billion iron ore deal, several large-value nickel deals and the $25 billion gas deal with China in 2002

This is yet another testament to the strength of Australia's strategic resources and energy relationship with China, and the enduring strength of China's economic growth."

"Australian companies are rising to the challenge to resource China's development just as they resourced Japan's development half a century ago," Mr Vaile said.

Rapid urbanisation and infrastructure development are driving China's massive growth and hunger for Australian resources and energy. Last year, China consumed a quarter of the world's copper, steel, alumina and zinc, 40 per cent of its cement and was the world's second-largest consumer of oil.

As well as an exporter of resources to China, Rio Tinto is also jointly developing Australian iron ore deposits and iron smelting technology with its Chinese partners through the Channar and the recently opened Eastern Range joint venture mines and the HIsmelt commercial iron smelting plant in Kwinana.

Contact: Matthew Doman (Ministerial) on 02 6277 7420