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.
Canada’s largest iron ore producer is looking to expand its operations in Newfoundland/Labrador.
IOC announced last week that it has launched a study to evaluate options that would increase production to 50 million tonnes per year by 2016. The expansion effectively doubles IOC’s capacity from 26 million tonnes per annum, the target set for 2013 after the completion of three concentrate expansion projects (COPs).
The study will consider a number of alternatives for expanding the mine in Labrador City, including concentrators, mining pits and related mine, rail, stock handling and port infrastructure, IOC, a subsidiary of Rio Tinto, said in a release.
IOC president and CEO Zoe Yujnovich told The Aurora community newspaper that the current market for iron ore played a major factor in the timing of the project:
“There is growth stimulating the iron ore market,” said Yujnovich. “That’s the reason why developing an expansion in the market today is the right time.”
The benchmark China import price for iron ore has tripled since late 2008 to $177 a tonne.
MINING.com reported on Monday strong demand in China because of the low quality of its domestic supply and India’s plans to cut exports by half over the next five years should bolster prices in the medium term before huge supplies from Australia start coming on stream from 2014 onwards.
Today, MINING.com reported that New York brokerage GFI announced that it now offers on-screen iron ore swap trading — which is the latest indication that the economics of the world’s foremost dry bulk commodity are being changed fundamentally.
Started in 2008, derivatives trading in iron ore is up fourfold this year after setting a record in July as investment banks enter the massive market in numbers.
The world’s top three miners – BHP Billiton, Vale and Rio Tinto – control nearly 70% of the 1 billion tonne annual seaborne trade and dominate price talks.
