Rio Tinto Sells Iron Ore to India

RioTinto,theworld’ssecond-largestironore miner, has made its .first-ever .iron ore sale to India,in what it called .a .“ground-breaking”development,according to Dow Jones Newswires.

SamWalsh, thecompany’sironorechief,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, whereithas .a .51% .stakein .a .jointventurewith state-owned .Orissa Mining Corp .

“It is also potentially significant given our ironoreprojectinOrissa,whichweexpectwill also be .a .source to supply the growing Indian market,”Walsh said .

Hedidnotconfirm .reports .thattheshipment waspartof .a .requestfromEssarforuptothree 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 .“decadeslong”returntostellargrowthfueledbydemand 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 .

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