Rio Tinto and its joint venture partners have sealed long-term contracts to supply iron ore from the Pilbara region of Western Australia to Hyundai Steel.

The agreements will see more than 40 million tonnes of iron ore exported to the Korean producer in the next decade.

Hyundai Steel is Korea’s second largest steel maker and the world’s second largest electric arc furnace (EAF) producer.

Under the contracts Hamersley Iron, Robe River and Hope Downs will start shipments in 2009 ramping up to an annual total of 4.6 million tonnes from 2012 to 2019.

Rio Tinto Iron Ore chief executive Sam Walsh says the agreements mark the next stage in a relationship that has endured through most of the lifespan of the Pilbara iron ore industry.

“Rio Tinto has enjoyed a long relationship with Korea, going back to our first shipment in 1973. These agreements with Hyundai Steel are the culmination of several years’ negotiations and open the next chapter in what has been a successful, mutually rewarding partnership.”

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