CATL to seek Hong Kong listing
CATL's board has approved the plan, but the proposal is pending approval from regulators, including the China Securities Regulatory Commission.
Giant miner Rio Tinto (LON:RIO) is closing down its Blair Athol coal mine in Australia as the company considers whether to limit spending on new projects next year, after reporting a 34% fall in underlying profits for the first half of 2012 to $5.2 billion.
The world’s second-largest iron ore producer, however, stuck to its $16 billion spending budget anticipating a quick recovery in the Chinese economy later this year that should stimulate demand for iron ore.
The decision comes a week after competitor BHP Billiton (ASX,LON,NYSE:BHP) said it would be cutting back on its $80 billion worth of capital expenditure it had earmarked up until 2015 while Xstrata reduced spending this year by $1 billion on Tuesday.
The Anglo-Australian miner said sharp drops in iron ore prices and a $989 million deferred tax asset following the introduction of the Minerals Resource Rent Tax in Australia ended up taking a toll on its results.
Increased operating costs and lower production output were the other major contributors, said the company.
Prices for the steel-making commodity have plunged this year from the highs of 2011, with prices dropping to two-and-a-half year lows.
Chinese import rates – the country is responsible for consuming 60% of the world’s iron – are now the lowest since December 2009, according to data provided by Steelindex.
Rio Tinto is not alone with its dismal Q2 report. Vale (NYSE:VALE), the world’s largest producer of iron ore, reported its worst second quarter since 2007 in July, blaming slowing steel demand.
