Rio Tinto has signed a five-year global equipment agreement (GFA) with FLSmidth for the supply of fixed equipment, including minerals processing and materials handling technologies, spare parts, consumables, and maintenance, consultancy and professional services.
FLSmidth, which is the first fixed equipment supplier to execute a GFA with Rio Tinto, believes the agreement provides mutual benefit through agreed terms and conditions providing reduced timelines for future engagement.
The agreement also provides a framework to govern the relationship and contract at all levels, facilitating identification of mutually beneficial joint value outcomes.
It maximises the value of the relationship and delivers continuous improvement initiatives on safety, technology, production and costs, according to FLSmidth.
The GFA runs from November 2019 to November 2024, supporting both companies’ objectives of developing closer partnerships with key businesses.
For FLSmidth, the agreement is strategically significant as it supports the company’s goal of developing closer partnerships with Tier 1 miners to help them improve the productivity of their global operations, and to collaborate and co-develop improved technologies and solutions for their projects.
“The Rio Tinto and FLSmidth global equipment agreement is a key partnership that we believe will bring significant, long-term benefits to both parties; it is a true win-win,” Peter Flanagan, FLSmidth senior vice president, executive accounts and key commodities, said.