Iron Ore Holdings Shares Jump on Rio Sales Accord
Dec/04/2009 | Under Companies - Exploration - Iron Ore Mine
Iron Ore Holdings Ltd., controlled by Australian billionaire Kerry Stokes, jumped to its highest level in almost four years in Sydney trading after Rio Tinto Group said it is considering buying a project.
Perth-based Iron Ore Holdings surged 15 percent to A$1.695, the highest closing price since Jan. 17, 2006.
Rio Tinto, the world’s second-biggest producer of iron ore, is evaluating Iron Ore Holding’s Iron Valley deposit in Western Australia’s Pilbara region and may buy all or part of the project, Rio Tinto said in a statement to the Australian stock exchange today. London-based Rio today also said it finalized an agreement to buy 1.5 million metric tons of iron ore from Iron Ore Holding’s Phil’s Creek mine.
Iron Ore Holdings’ Iron Valley deposit has 191 million tons of resources, including 120 million tons of high-grade material, the company said today. Iron Valley is 10 kilometers (6.2 miles) from Rio’s Yandicoogina mine.
Stokes, who controls Australia’s Seven Network Ltd., owns a 51.3 percent stake in Iron Ore Holdings through Wroxby Pty Ltd., according to Bloomberg data.