Allens Arthur Robinson (Allens) has advised leading international mining group Rio Tinto on the extension of its historic Channar Mining joint venture (Channar JV) with Chinese State-owned metals trading house Sinosteel Corporation.
Regarded as the first major Chinese foreign investment in the Australian mining industry, the original Channar JV agreements for the production of 200 million tonnes of iron ore in the Pilbara region of Western Australia were signed in 1987.
The extension of the ground-breaking joint venture, sealed at a signing ceremony at the Diaoyutai State Guesthouse in Beijing on 3 December, paves the way for a further 50 million tonnes of iron ore to be produced by the Channar JV at the Channar mine.
The Channar JV – in which Rio has a 60 per cent stake – owns the Channar mine and the arrangements for the extended term provide Sinosteel with 100 per cent take-off rights for Pilbara Blend product (into which Channar ore feeds).
Allens Partner Nic Tolé led the matter. He, together with Senior Associate Mark McAleer, attended the Diaoyutai State Guesthouse signing ceremony alongside senior executives from Rio, Chinese Government officials and the Australian Ambassador to China.
‘Having been involved in the establishment of the Channar JV in 1987, I am delighted to have been involved in a transaction which sees the original Channar JV arrangements extended and modernised,’ Mr Tolé said.
‘The transaction reinforces the significance of Rio Tinto’s relationship with Sinosteel, and China more broadly.’
Allens also advised Rio on the signing of a strategic cooperation framework agreement with Sinosteel for potential cooperation in, and joint development of, iron ore opportunities in and around the Channar mine.
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