Mumbai: Mining giant Rio Tinto is acquiring three 250 000 deadweight tonne carriers to transport iron ore from its mines in the Pilbara, Western Australia (and potentially from Simandou in Guinea) to customers in China and elsewhere.

The three vessels will cost a total of about US$315 million.

Delivery of the vessels, to be built by Japan's Namura Shipyards, would start by late 2012. The group has reserved rights to order another two vessels of similar size, Rio Tinto said in a release.

Rio Tinto Iron Ore, meanwhile, is expanding capacity at its Pilbara mines to 220 million tonnes by 2009, supported by long term contracts, hybrid contracts and spot sales.

Exports to China, its biggest iron ore consumer, has grown substantially in recent years and are forecast to continue to grow strongly with the potential to more than double post 2010.

Rio Tinto said its exceptional growth strategy in iron ore and its strong pricing outlook would allow the group to treble production to over 600 million tonnes of iron ore per annum from Australia and Guinea.

"Competitive freight and freight management are important levers in our growth plans.  These very large ore carriers will assist us in continuing to provide our customers with better delivery options well into the future while locking in low, long term freight rates for the benefit of our shareholders," Sam Walsh, chief executive of Rio Tinto Iron Ore, said.

"These fit-for-purpose vessels are designed for maximum loading at Rio Tinto's iron ore ports. The timely acquisition of these vessels, and the related options, provides us with maximum flexibility in developing our future marine strategy," said David Peever, managing director of Rio Tinto Marine.

The group, through Rio Tinto Marine, manages a freight portfolio with a strong focus on long term, low cost freight positions. "During 2008, we will be considering commercial options and partnerships to further leverage our very sizable freight business," Peever said.

( See: Rio Tinto planning 'mine of the future' in Australia, says CEO Tom Albanese)