ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print

Rio Tinto, China Baowu in $2bn deal to develop Australia iron ore

Partnership formed despite strained ties between Beijing and Canberra

A lump of iron ore mined from the Pilbara region of Western Australia. Rio Tinto and China Baowu Steel Group are jointly developing an iron ore project in this area for $2 billion.   © Reuters

(Reuters) -- Rio Tinto Ltd said on Wednesday it would team up with its biggest customer China Baowu Steel Group to develop an iron ore project in Western Australia for $2 billion as it looks to prop up its production from the Pilbara region.

The deal comes amid fraught ties between Australia and China -- the world's top exporter and buyer of iron ore, respectively -- with a recent push by Beijing to centralize purchases of iron ore stoking worries of a hit to mining giants such as Rio, BHP Group and Fortescue Metals.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more