Mining Companies Exploration and Investment News

Steelmaker largest company’s, Tata Steel, Posco and BaoSteel against joint venture from iron ore mining company Rio Tinto and BHP Billiton. Steel manufacturers expect the joint venture of the two iron ore mining companies (Rio and BHP) will allow both companies to control the supply of iron ore and iron ore prices.

World Steel Association, which represents nearly all major steelmaker, said this week that the European Union rejected the proposed joint venture.
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Moves aimed at reducing reliance on imported ore for steelmaking. With a proposed joint venture between the number two and three iron ore suppliers looking more likely, Chinese steelmakers are working furiously to secure their own ore supply by buying smaller iron ore firms or expanding mining capacity domestically.
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Burwill Holdings Ltd., a Hong Kong- listed steel trader, plans to triple the production capacity of a Chinese iron ore mine it agreed to buy last month on expectations prices will rise at least 15 percent next year.

The company may boost the iron ore concentrate capacity of the mine in Shandong province to 3 million metric tons a year by 2012, from an expected 1 million tons next year, Chairman Chan Shing said Dec. 1 in a phone interview. (continue reading…)

Asian iron ore prices hardened on Thursday on consistent Chinese buying that drove up freight costs as well, even though high steel output in China inspired caution in some buyers.

“Prices are increasing everyday,” said a dealer in a mining and exporting company in eastern India. “There is demand, but people are buying cautiously.”

The exporter said his last deal was done on Wednesday at $108 a tonne with freight, for ores with 63.5 percent iron. “Now we are looking for $111.”
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Citic Pacific Ltd., an arm of China’s biggest state-owned investment company, is leading record spending on low-grade iron ore mines in Australia to profit from surging demand as well as to diversify supply.

As much as A$18 billion ($16.6 billion) is being spent on so-called magnetite iron ore projects, 36 percent more than a year ago, according to data from the Australian Bureau of Agricultural and Resource Economics. Citic Pacific this month said it signed sales accords for its $4 billion project.
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