BEIJING: If you peek into Rio Tinto’s global “shopping cart” for 2025, you will not just find the usual mining essentials.
You would see a record-breaking US$4.3bil receipt from Chinese suppliers, a clear sign that the world’s mining giant has gone from being China’s “favourite rock salesman” to one of its most enthusiastic business partners.
Rio Tinto’s recent-year purchase in China, including massive 230-tonne mining trucks and high-horsepower graders for the Simandou project in Guinea, cutting-edge 90-tonne battery-swap electric haulers for Oyu Tolgoi in Mongolia, and specialised railway components for the Pilbara in Australia, is evidence that China has transitioned from being Rio Tinto’s largest customer to an indispensable architect of its global supply chain ecosystem.
The relationship between China, the world’s largest importer and consumer of iron ore, and Rio Tinto, the world’s largest seaborne iron ore producer, has officially entered its “upgrade” era.
This is as global mining giants are leaning into China’s high-tech manufacturing and rapid-fire innovation to power its mines across the world, said industry experts.
“Made in China” is now the high-tech heartbeat of the world’s most ambitious industrial projects, said Zhao Xiangbin, chief strategist at Beijing Gold and Forex Fortune Investment Management.
It is no longer just about sending iron ore from the red dust of Australia to the steel mills of China, he said.
“China is our largest customer and also a vital supply base for us,” said Jamie Sanders, head of global procurement at Rio Tinto. “We clearly see the distinct advantages of the Chinese supply chain.”
Sanders noted that the capabilities of Chinese suppliers in terms of rapid response and fast-paced innovation are unique on a global scale.
The engagement model with Chinese firms has evolved from a traditional buyer-supplier relationship into a “much closer partnership” focused on cocreating value across the company’s international project portfolio, he said. — China Daily/ANN
