Rinehart’s Hancock weighs $3.3 billion iron ore mine project
Hancock acquired a 51% interest in the Mt Bevan project from Legacy Iron Ore Ltd. and Hawthorn Resources.
BHP Billiton (NYSE:BHP) had a record quarter for iron ore production, the company announced today, with shipments from Western Australia reaching 173 million tonnes, a 28% increase over the same period last year.
Quarterly production records were also achieved at New South Wales Energy Coal and Illawarra Coal in both Australia, Cerrejon Coal in Colombia, and the Alumar refinery in Brazil.
But whether BHP and its competition among the Big 3 iron ore miners, Rio Tinto and Vale SA, can continue to crank out iron ore at record levels may depend on China. MINING.com reported yesterday that the world’s number one iron ore producer Vale is considering shifting from iron ore pricing based on the previous quarter’s prices to levels more aligned with the spot price, the company’s chief executive said on Tuesday.
The Brazilian company’s new willingness comes after more Chinese steel mills seek to postpone shipments or default on contracts as spot iron ore prices drop from historic highs above $170 to levels of around $150. BHP, Vale and Rio Tinto control nearly 70% of the 1 billion tonne annual iron ore seaborne trade and dominate price talks which in the past were characterized by secretive negotiations and annual contracts.
The Australian reported on the weekend that BHP Billiton, the world’s largest miner by market cap, is close to launching a $1.3 billion bid for Ferrous Resources, a Brazilian iron ore producer controlled by a number of international hedge funds including Philip Falcone’s Harbinger Capital.
