Skillings Mining Review January 2010

FINANCE

Rio Tinto Sells Iron Ore to India Rio .Tinto, .the .world’s .second-largest .iron .ore . miner, .has .made .its .first-ever .iron .ore .sale .to .

India, .in .what .it .called .a .“ground-breaking” .development, .according .to .Dow Jones Newswires.

Sam .Walsh, .the .company’s .iron .ore .chief, .said .

Rio .had .sold .a .160,000 .metric-ton .shipment .to .

Indian .steelmaker .Essar .for .export .in .late .December .

“To . me, . this . is . a . ground-breaking . sale, . and .

I .think .it .is .a .good .signal .for .us .and .Western .

Australia . -- . it . is . strategic . for . us,” . Walsh . told .

Dow Jones Newswires . . “This . is . only . one . shipment .at .this .stage .but .this .is .very .significant .in . terms .of .forging .a .relationship .with .Essar, .and . potentially .opening .doors .”

“We .have .long .believed .that .India .is .a .longterm . market . of . great . potential, . and . this . development .should .be .seen .in .that .context ,” .he . added .

Walsh . said . the . sale, . made . at . international . spot . rates, . was . also . significant . for . Rio’s . plans . to . launch . iron . ore . operations . in . Orissa . state, . where .it .has .a .51% .stake .in .a .joint .venture .with . state-owned .Orissa .Mining .Corp .

“It . is . also . potentially . significant . given . our . iron .ore .project .in .Orissa, .which .we .expect .will .

also .be .a .source .to .supply .the .growing .Indian . market,” .Walsh .said .

He .did .not .confirm .reports .that .the .shipment . was .part .of .a .request .from .Essar .for .up .to .three . million .tons .of .iron .ore .

China .is .Rio’s .chief .export .market, .but .India, . as .it .emerges .as .an .industrialized .nation, .also . is .expected .to .underpin .a .boom .in .demand .for . resources .

Australian .officials .have .forecast .a .“decades-

long” .return .to .stellar .growth .fueled .by .demand . for .commodities .from .developing .nations .

BHP . Billiton, . which . agreed . this . month . to . combine .its .Western .Australia .iron .ore .operations .with .Rio, .has .said .it .expects .global .steel . demand .to .double .in .15 .years .

India .would .partly .drive .a .250% .increase .in . seaborne . iron . ore . demand . by . 2025 . and . was . also . expected . to . consume . energy . and . coking . coal .in .significant .amounts, .BHP .said .

FRYBERGER, BUCHANAN, SMITH

&

FREDERICK, P.A. Duluth • Superior • St. Paul

DULUTHHIBBINGBLOOMINGTON

SPECIALIZINGIN:

Abrasives,BlastandDeburring CuttingTools HandandPowerTools MaintenanceandMiningSupplies PowerTransmissionandRubberProducts PrecisionMeasuring SafetySupplies ShopTools SupplyChainManagement

“TheBestServiceonEarthcomesfromMars” 4319WestFirstStreet,Duluth,MN55807800662578921862803032186283594Fax 215East78thStreet,Bloomington,MN55420800862609395288493889528841329Fax 3106EastBeltline,Hibbing,MN5574621826207562182639578Fax Website:www.marssupply.comEmail:sales@marssupply.com

6

SKILLINGS MINING REVIEW

ı

JANUARY 2010