Rio Tinto Ltd confirmed reports that it has reached iron ore price agreement with big Asian steel mills for April to June as a company representative clarified that China was not part of the closed deal, with price appreciations that could reach up to 90 percent according to industry experts.

Sources said that prices agreed from the deals have seen iron ore fines from $US62 per tonne last year up to about $US120 per tonne this year while that of the iron ore lump were also believed to have gained more than 90 percent jump in prices, coming from last year's $US71 per tonne.

The benchmark prices secured by the world's second biggest producer of iron ore reportedly veered away from the traditional annual pricing deal and covered only April 1 to June 30, which are also based on the quarterly spot prices from January to March, a period when iron ore prices have seen solid gains in world markets.

Last year, the world's three giant iron ore producers, which include Rio, BHP Billiton and Vale SA from Brazil, failed to ink an annual benchmark deal with Chinese steel mills and instead opted to sell their produced ore to numerous Chinese mills wholly based on the more lucrative spot prices.

At the same time, all three mining companies stated shifting its attention on a more fluid price system in order to dodge potential price conflicts with contracting steel mills companies in the future.

There are reports too that Vale SA, currently the world's number one iron ore producer and supplier, had successfully sealed a deal with a Japanese mills firm and secured a 90 percent price spikes in iron ore prices for quarterly contracts commencing on April 1.