Rio Tinto announced that its subsidiary Hamersley Iron has settled its iron ore contract for 2009 with South Korean steelmaker POSCO and Taiwanese steelmakers CSC and Dragon on the same terms agreed during last week with all its Japanese customers.

The prices agreed for the 2009 Contract year for Pilbara Blend Fines and Yandicoogina is 97.00c/dmtu, and Pilbara Blend Lump is 112.00c/dmtu.

Mr Sam Walsh CEO of Rio Tinto Iron Ore said that "Each year the pricing negotiations are tough and this year is no exception, although the situation is becoming clearer as more customers settle to the same terms.”

He added that “We continue to negotiate with our remaining customers, the bulk of whom are in China. We believe the settlements achieved to date demonstrate that customers appreciate the certainty of price and volume that the benchmark system ensures."

The release said that “For guidance, approximately half of the iron ore that Rio Tinto has produced this calendar year has been sold on a spot market basis.”