Miners set for bumper profits

Thanks to a move over to new quarterly pricing terms, miners look set to rake it in this year.

Last year's annual iron ore price negotiations between Rio Tinto and China led to a stand-off that culminated in the arrest of four of the mining group's executives. They have been sentenced to prison terms ranging from seven to 14 years for bribery and stealing commercial secrets. But this year, iron ore should prove less of a headache for Rio. Vale of Brazil and BHP Billiton, which, along with Rio, dominate the market, have agreed quarterly contracts with Japanese and Chinese steel mills. This marks the end of a 40-year-old benchmark system of annual contracts between miners and key ore-consuming countries.

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