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MOL and Rio Tinto join hands for iron ore transport

MOL and Rio Tinto join hands for iron ore transport

Tokyo: Rio Tinto and Mitsui O.S.K. Lines have signed an agreement on a number of dedicated long-, mid- and short-term contracts for transport of iron ore using Cape-size vessels and a 250,000 dwt iron ore carrier. These consist of

a) 25 year contract - standard Cape-size, followed by a 250,000dwt ore carrier
b) 10 year contract - standard Cape-size
c) One year contract - standard Cape-size

These contracts with Rio Tinto, in addition to an existing long-term dedicated contract for a 230,000dwt iron ore carrier and contracts of affreightment (COAs), strengthen MOL's position as a long-term shipping partner with Rio Tinto and bring annual shipping volume to nearly 10 million tons (excluding many spot contracts).

In a statement to the press, a MOL spokesperson said, "MOL's Cape-size fleet, the world's largest, gives Rio Tinto access to modern, reliable vessels and its emphasis on safe operation aligns with Rio Tinto's core values regarding safety and environmental protection. This was reinforced through Rio Tinto's inspection of MOL's bridge resource management (BRM) training centers in Tokyo, which feature high-technology simulators, and MOL's Safety Operation Supporting Center, which monitors its vessels 24 hours a day, seven days a week.

In line with MOL's strategy to optimize its fleet through long, mid-, and short-term contracts with its valued customers, the company has decided to enter into long-term contracts with Rio Tinto for some of its tonnage. Rio Tinto Marine, the shipping arm of Rio Tinto, one of the world's largest iron ore producers, plays a significant role in seaborne trade of iron ore and has gained a strong reputation among cargo receivers and ship owners.  [13/07/09]