The strengthening links boosted Rio Tinto's presence in the Japanese market, Rio Tinto Iron Ore chief executive Chris Renwick said.

A new 150-million-tonne, 20-year iron ore supply agreement with Nippon Steel, possible expansion of the Hail Creek coal mine in Queensland, transfer of Rio Tinto's 47% stake in the Beasley River iron ore deposit, and various technical exchange programs, underpin the growing partnership between the miner and its customers.

A 15-year contract to supply up to 30Mtpa of product from Hail Creek to Nippon Steel would underpin the mine's expansion plans, Rio Tinto said.

An initial study at Hail Creek has been aimed at increasing capacity to eight million tonnes per annum, with studies to further expand capacity also being considered. The study to eight million tonnes per annum is expected to be completed in the next few months.

An agreement for Nippon Steel to take an 8% interest was also being finalised.

Hail Creek is a joint venture owned by Rio Tinto Coal Australia (92%), Marubeni Coal (5.33%) and Sumisho Coal Development (2.67%).