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.
Fox Business reports global number one miner BHP Billiton plans to create a new, more transparent system for pricing iron ore called Global Ore by the end of the year or early next year, the chief executive of the company’s Ferrous and Coal division said Thursday.
BHP, Vale and Rio Tinto control nearly 70% of the 1 billion tonne annual iron ore seaborne trade and dominate price talks. The pricing of iron ore which have shifted from secretive negotiations and annual contracts over the last couple of years to prices linked to the spot market constitutes a “true revolution” say analysts. Firm demand from China’s construction sector and a drop off in India’s exports have been behind the strength in spot iron ore prices which, at above $170 a tonne, have trebled from late 2008. In August results for BHP Billiton showed its iron ore division accounted for the bulk of its record $22 billion in profits.
Fox Business reports Marcus Randolph told an audience at the World Steel Association here that he was working with members in the audience to develop a pricing system that would allow iron ore prices to be quoted on a screen in order to provide market participants with a more transparent price than index providers such as Platts.
MINING.com reported at the end of September speaking to reporters at an industry conference in Qingdao China, the world’s largest iron ore miners said they have seen no weakness in demand from China. Forecasts for China’s imports by 2015 now top 1 billion tonnes – up more than 60% from 2010 – due to the relatively high cost and the low quality of its domestic supplies.
MINING.com reported in August that iron ore miners have begun to call the shots as China’s 27 largest steel companies saw a 15.7% decrease in the first-half profits from a year earlier as soaring iron ore costs squeezed margins. The woes of China’s steelmakers, which have been switching to cheaper low grade ore to cut costs, are in stark contrast to profits at miners.
MINING.com reported in August New York brokerage GFI’s announcement that it now offers on-screen iron ore swap trading 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.
