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.
Brazilian mining companies and steelmakers are likely to invest more in iron ore next year given the high profit margin in the segment.
In early December, when Vale presented its investment program for 2013, the company stated that it would mainly focus on its Serra Sul project in Carajás.
Serra Sul is expected to reduce production costs and to start operations in 2016, with an annual output of 90 million tons of iron ore. The total investments amount to BRL 19.5 billion (USD 9.52 billion).
Vale’s investment program for 2013 totals BRL 16.3 billion (USD 7.96 billion), falling behind this year’s BRL 17.5 billion (USD 8.54 billion).
Source (Portuguese): O Estado de Sao Paulovia Brightwire News.
