Rio Tinto Group may sell as much as 10% of the steelmaking raw material supplied under contracts agreed recently at spot prices, which are at a record.

Mr Gervase Greene spokesman of Rio Tinto said that it may exercise a clause in some of the contracts stating it can supply as little of 90% of the agreed amount of iron ore at fixed annual prices.

Producers of the steelmaking raw material are currently negotiating 2008 fixed price contracts with consumers. Rio said last month it will triple sales in the cash, or spot, market this year to 15 million tonnes.

Mr Greene said that “I can not say how much of the 15 million tonnes will come from the 10% rule. Some will be from new production, but what the proportion is we will see over the course of this year because the sales have not begun yet.''