Rio Tinto Buys Three Iron-Ore Ships for $315 Million

Rio Tinto Group., the world's third largest mining company, will buy three iron-ore ships for $315 million to increase exports from Western Australia to China.

"These very large ore carriers will assist us in continuing to provide our customers with better delivery options," Sam Walsh, the head of Rio Tinto Iron Ore, said today in a statement to the Australian Stock Exchange.

Rio Chief Executive Officer Tom Albanese in November outlined plans to increase production of the steelmaking raw material threefold to more than 600 million metric tons. China's iron-ore imports could double from 2010, Rio said in the statement today.

The three carriers, each with a capacity of 250,000 tons, will be built in Japan and delivered in 2012. Rio Tinto has also reserved the right to buy a further two ships of a similar size.

Rio Tinto fell by as much as A$3.57, or 2.7 percent, to A$128.50, and traded at A$130.05 at 12:41 p.m. Sydney time.