BHP posts second straight year of record iron ore production, beats estimates
The world's largest listed miner said iron ore output from Western Australia on a 100% basis was 76.8 million tonnes in the three months to June 30.
The China Post reports Mongolia’s National Security Council has rejected a deal struck with foreign firms to develop the western block of Tavan Tolgoi in the South Gobi desert, the world’s largest deposit of high-quality coking coal used in steelmaking.
Metallurgical coal has been trading at record levels of $330/tonne this year and the news is a blow to US mining giant Peabody Energy, China’s Shenhua and a Russian-Mongolian consortium that were announced as winners in July. At the time the losing bidders from Brazil, India and South Korea were smarting and Japan went so far as to call the bidding process ‘extremely regrettable’. Mongolia was hoping to privatize its Erdenes Tavan Tolgoi coal-mining company which controls the remainder of the 6 billion tonne resource for $3 billion next year.
The China Post reported on Saturday, S. Batzaya, a spokeswoman for President Tsakhia Elbegdorj, told AFP the council — which consists of the president, prime minister and parliamentary speaker — had rejected the deal, without providing more details.
Shenhua had been awarded the leading 40% share in developing the Tsankhi block which on its own holds 1.2 billion tonnes of reserves, leaving the Russian-Mongolian concern with 36% and US-based Peabody Energy with 24%. Japanese trading firm Mitsui & Co, Brazil’s Vale and Indian steel giant ArcelorMittal were among the losing bidders.
Even before Saturday’s news it was clear that Shenhua faced a rocky road ahead to bring the project to fruition. MINING.com predicted in July that building the world’s largest coal mine was turning into diplomatic disaster because while the political structuring was typical, none of the three operators had given public explanations as to how they may proceed or even work together.
MINING.com reported last week Mongolia is likely to sell a stake in its Erdenes Tavan Tolgoi coal-mining company which controls the main block of the deposit that has been mined since the 1960s to the public next year, raising more than $3 billion. Tavan Tolgoi is the second largest mining investment in Mongolia behind the Oyu Tolgoi gold-copper mine being built by Canada’s Ivanhoe Mines.
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Digit
No surprise here!