Arcadium shareholders approve sale to Rio Tinto
Shares of Arcadium Lithium rose about 7% in extended trading after the company said that about 98% of its shareholders had voted in favor of the sale.
The Australian reports China-backed Citic Pacific’s $US5.2 billion West Australian iron ore project has been hit with a $US900 million budget blowout in another sign of growing costs in the booming resource state.
The cost increase is the second for Sino Iron – the largest magnetite iron ore project under development globally – whose first production target has been pushed back again.
Cost blowouts in Western Australia’s booming resources sector are not new. The massive Oakajee port and rail infrastructure project has been hit with cost increases and schedule delays.
“In the past few years, increased steel production in China and other emerging countries led to a continued rise in the price of iron ore,” Citic said. “This in turn significantly increased the construction costs in most iron ore mining projects in Australia as a result of factors such as labour shortages, the rise in the value of the Australian dollar and higher costs of equipment and construction materials.”
