Mining giant Rio Tinto has approached two shipyards in China to build up to 12 LNG-fuelled newcastlemaxes worth about $804m.

Industry sources said state-owned Qingdao Beihai Shipbuilding Heavy Industry and privately owned New Times Shipbuilding have been selected as the preferred yards for the newbuildings, which are being discussed under the code ­­name “Project Orion”.

Three berths and options for three more slots have been reserved at each yard.