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.
ArcelorMittal South Africa (AMSA) is due to release its 3Q 2012 results on Wednesday, October 31. Market observers are expecting that uncertainty regarding serial supply agreements with Sishen Iron Ore Co. will weigh on the results.
The two companies’ latest agreement, which expires in December, supplies iron ore under the same terms and conditions of their extended interim pricing agreement. However, it is a far cry from the initial agreement that would have delivered cheap steel to South Africa.
In addition, government-subsidized steel exports from China have diluted AMSA’s domestic and foreign steel markets, while steel input prices in the former have surged.
Combined with the strike action at Sishen earlier this month, AMSA’s 3Q results are expected to take a substantial blow. In the meantime, the company is continuing negotiations with Sishen over their supply agreement.
Source (English): Business Day via BrightWire News.
