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Perth Mining Financier Sees Lower Iron Ore Contract Prices Ahead
May 12th
Perth mining financier sees lower iron ore contract prices ahead
One of the leading figures in mid-tier iron ore production in Western Australia, George Jones, believes the big price pushes by the big three – Rio Tinto Ltd, BHP Billiton and Vale – will see a new order over the next 12 months – with contracts being negotiated with the Chinese (cnmining) at lower prices.
The announcement by major Pilbara iron ore exporter Rio Tinto that it would be cutting its production by 10% is expected to be a forerunner of tougher negotiations with Chinese and other Asian steel mills taking the lead.
George Jones who was involved with eastern wheatbelt iron ore miner Portman Mining – taken over by American iron and steel company Cliffs Mining – and now is chairman of Gindalbie Metals Ltd. Earlier this month Gindalbie (ASX: GBG) announced it would raise $A162 million ($US112.5 M) through its joint venture partner AnSteel of China to complete project development financing for the Karara iron ore-magnetite project in Western Australia’s mid north. This would involve a placement of 190,658,824 shares at A85c/share, a 105% premium to the last October quoted price. The last ASX trade today was at A44¢.
On ABC television news tonight Jones said in a brief interview that the high prices sought and gained in the past two years by the majors were now rebounding.
Also today, Australia’s third largest miner OZ Minerals Ltd (ASX: OZL) warned that it was undertaking a “thorough review of all capital and operational expenditures.”
While the company was now commissioning the big Prominent Hill copper-gold mine in South Australia’s far north and is preparing to commission its second autoclave for the Sepon copper plant in Laos “the timing and structure of all other projects is under review.
Managing Director Andrew Michelmore said: “OZ Minerals is in the fortunate position of having a healthy balance sheet, a good cash position and an enviable suite of projects that underwrite the future growth of the Company.”
The picture being painted in the business media in Australia is getting more sobering by the day. This morning’s The Australian newspaper cited reported sackings since early August and the indications in Perth’s stockbroking quarters and the mining hub of West Perth shows job fallout has been more substantial.
The reported job culls include 150 by laterite nickel-cobalt miner and refiner Minara Resources Ltd (ASX: MRE) with another 50 to go, Perilya Ltd (ASX: PEM) cut 440 jobs in Broken Hill, Mt Gibson Iron Ltd (ASX: MGX) will drop one-third of its workforce on iron ore operations in WA, the now European-controlled, Consolidated Minerals has cut jobs at its nickel mining operations at Kambalda and late last week CBH Resources Ltd (ASX: CBH) added 118 job cuts to the 220 dropped in June at its Endeavour lead-zinc-silver mine near Cobar in New South Wales.
http://www.cnmining.org/news/?id=330
Iron Ore Thailand 2009
May 12th
On-site at an Iron Ore mine field in Thailand. For inquiries, please see credits.
Second Take: Kumba Iron Ore
May 11th
Creamer Media’s Shannon O’Donnell speaks to Mining Weekly editor Martin Creamer about Kumba Iron Ore’s 14% increase in production this year.
Rio to Cut Iron Ore Output 10% as China Demand Slows
May 11th
Rio to Cut Iron Ore Output 10% as China Demand Slows
Rio Tinto Group, the world’s second- largest iron ore exporter, will cut output at its mines in Western Australia by 10 percent because of reduced demand from steelmakers in China (cnmining), following the lead of bigger rival Cia. Vale do Rio Doce.
“This reduction is a prudent move to align production with revised customer delivery requirements in the light of the fourth- quarter drop in Chinese demand,” Tom Albanese, chief executive officer of the London-based company, said today in a statement.
Slowing economies have slashed steel demand, damped prices and in October made mills unprofitable in China, the biggest maker of the metal. BHP Billiton Ltd., the third-biggest exporter of the ore, so far has declined to cut its production or curb expansion.
“Rio is facing reality and I think BHP will inevitably have to say something,” Peter Arden, an analyst at Ord Minnett Ltd., an affiliate of JPMorgan Chase & Co., said from Melbourne. Rio’s cuts will reduce earnings “quite significantly”, he said.
Rio Tinto’s shares rose 8.5 percent to A$78.16 at 12:01 p.m. Sydney time. BHP’s shares rose 7.4 percent.
China yesterday pledged a 4 trillion yuan ($586 billion) stimulus plan to prop up growth as the world heads towards recession. The funds will go toward low-rent housing, rural infrastructure as well as roads, railways and airports.
“This will be a short, sharp slowdown in China, with demand rebounding over the course of 2009, as the fundamentals of economic growth remain sound,” Albanese said in the statement.
Fortescue ShutdownFortescue Metals Group Ltd., Australia’s third-largest iron ore exporter, said today it’s bringing forward a planned shutdown of its port and mine processing plant, reducing production this year by about 10 percent. More normal conditions are expected for next year and beyond, the Perth-based company said.
The world’s largest producers of aluminum, iron ore and steel are cutting output and reviewing investment plans. Brazil’s Vale began iron ore output cuts last month and doesn’t expect a market recovery until next year.
“We have no plans to cut production,” BHP spokesman Peter Ogden said by phone from Melbourne today.
Shipments from Rio’s mines will also be reduced to be between 170 million metric tons and 175 million tons in 12 months ending Dec. 31, the company said, without giving the original figure.
The company produced 145 million tons of ore from its Pilbara mines in Western Australia last year. It had forecast 2008 output of between 190 million and 195 million tons in October. Rio produced 139.2 million tons in the first 9 months of the year.
Cut PricesRio and BHP may be forced to cut prices by 15 percent next year, ending six years of gains, according to the median estimate of 11 analysts surveyed last week by Bloomberg News. BHP, the world’s third-biggest iron ore exporter, is seeking to buy Rio in a hostile $73 billion all-stock takeover offer.
“This is about as bad as it gets,” said Ord Minnett’s Arden. He expects contract prices may fall by 10 percent next year and may decline again the following year.
ArcelorMittal, the world’s biggest steelmaker, last week said it will reduce production by as much as 35 percent in the U.S. and 30 percent in Europe after prices tumbled. The Luxembourg-based company forecast earnings will slide as much as 48 percent to $2.5 billion in the fourth quarter.
Provided By: http://www.cnmining.org
China Iron Ores Mining Industry
May 11th
Provides key data and concise analyses, presents a comparative analysis on the development of iron ores mining industry in 31 provincial regions and 20 major cities in visualized form of data map. The report also includes a list of top 100 enterprises in the sector and the comparison on investment environment in top 10 hot regions. In addition, the report truly reflects the position of foreign enterprises in this industry across China based on a comprehensive comparison of operating conditions among different enterprise types. Furthermore, this is the first report to adopt ISIC (International Standard Industrial Classification of All Economic Activities) in classification of Chinese enterprises, corresponding to the reading habit of international readers, and it is also very helpful for readers to make a comparison on the development condition and investment potential of iron ores mining industry in China with that in other countries.
Additionally, by original creation of ZEEFER Industry Distribution Index, the report directly shows the difference in various regions of Mainland China in terms of iron ores mining industry, providing an important reference for investors’ selection of target regions to make investment.
What will you get from this report?
- To get a comprehensive picture on distribution of and difference in performance in regions of Mainland China in terms of the iron ores mining industry;
- To figure out the hot regions in China for iron ores mining industry, find out the potential provinces and cities suitable for investment as well as the economic development level and investment environment in these regions;
- To get a clear picture on the overall development, industry size and growth trend of iron ores mining industry across China in the past 3 years;
- To get a clear picture on development status of foreign enterprises, state-owned enterprises, and private enterprises in recent years as well as the industry position of the above ownerships;
- Based on adoption of the global uniform industry classification standard – ISIC, the report enables you to make a direct comparison of China iron ores mining industry with parallel industry in other countries;
- Present you with a list of top 100 enterprises inside the industry in terms of the sales revenue
For more information please visit:
http://www.aarkstore.com/reports/China-Iron-Ores-Mining-Industry-Profile-ISIC1310-40447.html
PH.NO. 919272852585
Iron Ore Exploration & Mining
May 11th
Iron ore are huge rocks from which metallic iron can be extracted. These ores rich in iron oxide and are in various colors such as dark grey, bright yellow, deep blue to rusty red. Iron ore mining methods differs from the type of ore to be mined. Magnetite mined from it is the most useful part in iron concentration.
Rachana Global is such a group who has proficiency as well as know-how of exploring the new areas of natural resources and mineral mining. Rachana Global is been one of the oldest player in natural resources exploration and mineral mining.
Rachana Global has identified the iron ore minerals in the region of Nampula province in northern Mozambique. The group conducted a test which has shown the possibility of producing iron of marketable grade through magnetic separation. Iron ore plays an important role in extraction of iron which is the most commonly used metal in the world.
The iron ore reserves are in plenty in the world mines but the current consumption states that the reserves would get depleted within few years. It is argued that iron ore is the most integral part of global economy than other mineral.
Iron ore is a large volume, low margin business, as it requires major investment in infrastructure. This is the reason that the exploration and mining is in the hands of few major players only. From these few players Rachana global plays an important role in iron ore exploration and mining with its iron ore technologists.
Rachana Global always finds out new avenues to dig up to achieve commercial success. It has always come up with varied innovative products and services. “Growth Lies in Undying Dedication” this is where Rachana Global believes in. Creating growth is their single aim and harnessing natural resources is their sole responsibility.
For further details you can visit http://www.rachanaglobal.com/iron-ore.htm .
Iron Ore Miner Fortescue Stock Surges on Bid Rumours
May 11th
Iron ore miner Fortescue stock surges on bid rumours
Shares in Australian iron ore miner Fortescue Metals rose 42 percent at one time on Monday said to be on bid rumours, but lost half their gains on doubts and denials.
Shares in Australian iron ore miner Fortescue Metals Group (FMG.AX) soared as much as 42 percent on Monday, forcing Fortescue to issue a statement that failed to extinguish rumours of takeover interest in the firm.
Fortescue shares hit a high of A$2.93 on rumours that BHP Billiton Ltd (BHP.AX) (BLT.L) might make a takeover bid for the company or that Chinese firms might seek to take a stake.
The company, responding to a stock-exchange query, said it knew of no reason for the sudden rise, but left open the door to speculation it might be in talks with BHP or a Chinese suitor.
“The company does from time to time hold discussions with industry entities regarding product supply and investment opportunities which are confidential in nature and there are none that are progressed to a level that could be considered complete,” Fortescue said in its short statement.
Fortescue’s statement cooled the share price, which closed up 21.4 percent at A$2.50.
But fund manager Tim Schroeders, of Pengana Capital, doubted the rumours and said the day’s gains had been magnified by short-covering after a recent steep fall in Fortescue shares.
“I think it’s people grasping at straws,” he said.
“The BHP one can be ruled out plain and simple,” he added, noting that Fortescue was saddled with debt and that BHP had dropped its $66 billion bid for rival Rio Tinto (RIO.AX) (RIO.L) last week partly because of Rio’s indebtedness.
Both Fortescue and BHP declined to comment.
“We don’t comment on market speculation,” BHP spokesman Peter Ogden said.
Fortescue’s volatile shares stood as high as A$13.15 in June, before falling to a low for the year of A$1.16 on Nov. 20.
The company sells iron ore to 27 Chinese steel companies, its largest customer being Baoshan Iron and Steel Co (Baosteel) (600019.SS), China’s(cnmining) top steel maker.
http://www.cnmining.org/news/?id=556
Chinese Firm to Make $2.6bn Investment in Iron Ore Mining
May 11th
Chinese firm to make $2.6bn investment in Liberian iron ore mining
China Union intends to spend US$2.6bn to bring the Bong iron ore deposit to production within two years, and will also recondition the capital’s port and build a hydro power plant.
A Chinese firm will make the biggest ever investment in Liberia when it signs a $2.6 billion iron ore deal in January, the West African nation says.
The 25-year project to be undertaken by China Union <000036.SZ> will directly and indirectly create 18,000 jobs, and give Liberia an immediate cash boost of $40 million on signature.
“This is the biggest investment in our country’s history,” Richard Tolbert, Chairman of the National Investment Commission, told Reuters late on Monday.
The deal, which beat nine rival bids, will trump the world’s largest steelmaker, ArcelorMittal which is spending $1.5 billion in Liberia, also on iron ore.
Many firms have scaled back or postponed African mining projects as metals prices have crashed in the past six months, and most analysts believe a severe global recession will cut demand for industrial minerals for years to come.
Tolbert said the timing of the Chinese investment was a vote of confidence in Liberia.
“In the midst of the global financial crisis … this is really a significant sign of the attractiveness of Liberia,” Tolbert said.
SIGNATURE BONUS
Before its 1989-2003 civil war, Liberia was the world’s fifth largest producer of iron ore, and foreign investment in the mineral is a centrepiece of President Ellen Johnson-Sirleaf’s stratgegy of economic rebuilding.
China(cnmining) Union intends to bring the Bong deposit, to the north-west of capital Monrovia, to production within two years, and will also recondition the capital’s port and build a hydro power plant to supply the city, Tolbert said. He did not give details of the overall size of the Bong deposit.
Part of the deal is a $40 million signature bonus to be paid to the government, Tolbert said. “This amount will go into the government treasury for development purposes,” he said.
A $300 million signature bonus paid by China National Petroleum Corp to Niger for an oil deal earlier this year drew criticism from rights groups, who said there was insufficient transparency on how it would be spent.
President Johnson-Sirleaf has promised zero tolerance of corruption. In September, Liberia disqualified two companies from bidding for another mining project on grounds of previous “acts of violation” by the firms.
As well as iron ore, Liberia aims to develop offshore oil. Anadarko Petroleum , Hong Kong Tongtai Petroleum, Repsol and Woodside have signed exploration deals.
Provided By: http://cnmining.org/
History Of Iron Ore
May 11th
Our science books are full of successful inventions of Thomas Edison like electricity, phonograph and many others, but there is hardly any mention about his failures. One of his most peculiar failures was his lack of ability to find an effective way to excavate iron ore.
If he had been successful in excavating iron ore, he would have been a billionaire at that time and the possibilities that would have been generated after excavation like creation of millions of jobs, and many other inventions.
Iron is the most economical of all the metals available for mining, and yet at the same time is of no use in its pure form. Pure Iron is very delicate and cannot be used to manufacture any products. It is silver in color in its pure form. Its gets its gray color after it is combined with oxygen. Iron can not be put any practical application in its pure form.
Hence it was important that an effective extraction process was discovered. For ten years, from 1880 to 1890, Edison carried out many experiments, hired the services of scientists, to find a novel way to extract iron ore. He was doing this to extract iron ore for the Pennsylvania steel mills.
He shifted from his comfortable office to work in the old iron mines to look for an economical way to meet with the growing demand of steel . His experiments of testing and processing were getting very expensive and he had to sell all his stock in General Electric to fund his invention. His heirs must be regretting his decision even today.
Edison could not succeed to extract the iron from unusable, low grade ores. He had to finally abandon this project. He could never recover his money that he had put in this project. Later on however, he a earned lot of money after he continued his work on the phonograph and motion pictures etc.
It was a challenging task for both Edison and the American economy to find an economic way to produce steel at cheaper rates. After 1840 the American iron industry was going thru a resurgence as American was not one of the major steel producer in the world.
In 1844, government surveyors traced huge deposits of iron ore of anthracite in the Great Lakes area. After this Pennsylvania became known as America’s largest supplier of iron and steel.
A British engineer named Henry Bessemer invented a process for steel extraction process. He accomplished the incomplete task of Thomas Edison. He devised an iron smelting process thur which it was feasible to produce large quantities of steel. This process is still used by some manufacturers even today.
His invention was quite inexpensive and provided an efficient process to produce steel from iron ore. But still a refined process was invented by Abram S. Hewitt who even improved on Bessemer process of Andrew Carnegie. He soon became a steel tycoon that by his improved process of developing the open-hearth converter and his process was preferred over that of Bessemer by American steel manufacturers.
The American steel industry was revolutionized with the invention of low cost steel production. American Industry was now the leader in the world in steel production. In 1873 alone, America produced nearly 115,000 tons of steel. It was now possible to use steel in many industries because of fall in its prices.
Automotive industry in America is the major (nearly 70%) user of finished steel in America.
Andrew Caxton is the author of many resources on home decoration related topics.
