TAKEOVER target Rio Tinto has won massive price increases for iron ore sold to Chinese steelmaker Baosteel. On average it has earned an 85 percent price hike from the steelmaker. Its argument that its iron ore was worthy of a proximity premium over Brazilian competitor Vale seems to have carried the day. Rio reached agreement with China's biggest steelmaker for rises ranging from 80-97 percent, depending on the category of the ore. The price is considerably higher than that achieved by Vale, the world's biggest iron ore producer. Vale negotiated rises of 65-70 percent for its ore.
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