Rio Tinto to hike iron ore price for China by 80-97 percent

LONDON (AFP) — Anglo-Australian mining group Rio Tinto said Monday that it had agreed a near doubling of the price of its iron ore sales to Chinese steel maker Baosteel.

Prices are to increase by 80-97 percent depending on the category of iron ore, which is a vital raw material used to make steel.

"Rio Tinto Iron Ore subsidiary Hamersley Iron has today reached agreement with China's Baosteel on the price for Hamersley iron ore deliveries for the contract year commencing 1 April 2008," said a statement issued by Rio Tinto.

A spokesman for Rio Tinto said the deal was "very significant," as ...