Rio Tinto, Xiangtan sign 5-year deal

The Australian mining giant Rio Tinto Plc has entered into a five-year partnership with Xiangtan Electric Manufacturing Group Co Ltd for the supply and service of heavy mobile equipment across its global operations, the first such deal for both companies.

XEMC will provide Rio Tinto with heavy mobile equipment including 220 metric ton and 300 ton trucks and associated components and services.

Rio Tinto said the contract with XEMC signifies its commitment to developing its reciprocal relationship with China.

Rio Tinto China Managing Director Binyan Ren said: "China is one of the most important markets for Rio Tinto. By working with leading Chinese suppliers such as XEMC, we have been able to achieve unique outcomes whereby we all benefit."

"We are very pleased to see Chinese manufacturing progressing up the value chain to create quality, higher technology products," he said.

In the past four years, Rio Tinto purchased more than $5 billion worth of goods and services from China for use in its operations worldwide.

As a company with very high standards for quality, safety and cost effectiveness, Rio Tinto works with the best suppliers in the world, and more of those suppliers are now from China, said Andrew Harding, head of Rio Tinto’s iron ore business.