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July 10, 2009

MOL, Rio Tinto Sign Iron Ore Transport Deals

Rio Tinto and Mitsui O.S.K. Lines, Ltd. (MOL; President: Akimitsu Ashida) today announced 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.

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.

MOL and Rio Tinto have concluded the following contracts:
a) 25-year contract - standard Cape-size, followed by a 250,000dwt ore carrier
b) 10year contract - standard Cape-size
c) 1-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).

* BRM is a basic concept encompassing skills in organization, human relations, communication, and navigation that are required of any vessel captain, navigation officer, and crew member. BRM training was developed to spread this concept, and is an effective means of preventing marine accidents caused by human error.

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