A Conference Board of Canada report says high energy and metals prices "are prompting resource companies to invest billions in iron ore projects, nickel processing and offshore oil developments" in Newfoundland and Labrador, generating the largest growth in real GDP this year of all the Canadian provinces. The board's Provincial Outlook - Spring 2011 report issued Wednesday also forecasts that Saskatchewan "will benefit from tax breaks and a hot mining industry."
Iron Ore Mining News
Australia's government urged companies on Monday to tighten vigilance over cyber attacks launched offshore against some of the world's biggest resource firms and other businesses, warning high-tech threats were intensifying. Lockheed Martin Corp , the U.S. government's top information technology provider, raised concern about cyber hacking at the weekend, complaining of a pattern of frequent attacks on it from around the world.
A Conference Board of Canada report says high energy and metals prices "are prompting resource companies to invest billions in iron ore projects, nickel processing and offshore oil developments" in Newfoundland and Labrador, generating the largest growth in real GDP this year of all the Canadian provinces." The board's Provincial Outlook - Spring 2011 report issued Wednesday also forecasts that Saskatchewan "will benefit from tax breaks and a hot mining industry."
Australia's Fortescue Metals said on Thursday that due to weak credit market conditions it had dropped plans to proceed with a previously announced $1 billion unsecured term loan facility. The loan was launched in the United States on Monday by JP Morgan , according to Loan Pricing Corp, a Reuters news service. It was syndicated in the range of 375-400 basis point over London Interbank Offered Rates (Libor), it said.
The S&P GSCI Index of 24 raw materials dropped about 10% since the Goldman (GS) sell call on April 11. It was up over 1% today on the new bullish call by both GS and Morgan Stanley (MS).
All the money sloshing around in the financial system has to be poured into something. The latest study of mergers and acquisitions in the resource sector show that two of the four biggest deals of 2011 worth over $3bn are financial companies taking over natural resource companies, not strategic investments by other miners. Lower down the scales – deals worth $50m or more – financial investors are also finding ways in. In 2009 only 3.6% of transaction involved investment houses and corporate takeover artists. By the first quarter of 2011 that figure had jumped to 16.1%.
The boom in resource industry wealth flowing from iron ore and coal exports to China and India has created a record number of billionaires in Australia, reports the Sydney Morning Herald. The latest to top the billionaires club Down Under is iron ore queen Gina Reinhart, who has become the richest person ever in Australia, worth an estimated $10.3 billion. Reinhart is the first woman to to top BRW's Rich 200 list. The list shows Australia now has 35 billionaires, five more than last year, and a cut-off point of $215 million, which is $30 million higher than last year's cut-off of $185 million.
Hot on the heels of a lacklustre listing by Swiss commodities and mining behemoth Glencore, news comes of another multi-billion dollar natural resources IPO going awry. Resourcehouse planned to raise $3.6bn on the Hong Kong market on Thursday but has now postponed the listing to at least the end of the month. The Australian iron ore and coal miner has made three previous attempts to go public in 2009 and 2010.
With stronger balance sheets, improved credit availability and stabilizing metal prices, PwC Tuesday forecast the recovery in global metals M&A is expected to continue for the balance of this year. Iron ore targets were the primary driver of global metals M&A activity during the first quarter of 2011, contributing almost 40% of the deals worth a total of $5.1 billion, a significant increase over full-year 2010 when iron ore represented only 20% of total deals.
Iron ore prices on the Chinese spot market were largely unchanged on Tuesday, with traders still unwilling to risk making purchases as they try to determine underlying demand in the coming months. Indian ore with 63.5/63 percent iron content was being offered at $182-185 including freight, according to the Umetal consultancy, unchanged since last Friday, but there were few takers.
China's Baoshan Iron & Steel Co Ltd expects to receive regulatory approval for its coastal Zhanjiang project this year, Chairman He Wenbo said on Tuesday, despite government resolve to extend a fight against overcapacity. "We will try to obtain approval this year, and are starting to build a raw materials dock," He, also president of parent Baosteel Group, told reporters on the sidelines of a company event.
South African coal miner Exxaro Resources has agreed to pay AUD$123 million for Territory Resources with the goal of producing 10 million metric tonnes of iron ore a year, Bloomberg reported Monday: Exxaro offered A$0.46 a share for the iron-ore miner based in Perth, Western Australia, the companies said in a statement today. The bid, at a 64 percent premium to the closing price on May 20, was recommended by Territory’s board, they said.
The investment will allow ArcelorMittal Mines Canada to increase its annual production of iron ore concentrate from 14 million tons to 24 million tons by 2013. AMMC is also evaluating increasing its production of iron ore pellets from 9.2 million tons to 18.5 million tons. The scheme represents a total investment of CAN$2.1 billion dollars that will create 8,000 jobs during construction and more than 900 permanent jobs once completed. Commenting, Peter Kukielski, Member of the Group Management Board and Head of Mining for ArcelorMittal, said “ArcelorMittal Mines Canada is a flagship mining asset for the Group, which offers considerable opportunity for expansion. We have already announced our intention to grow our iron ore production to 100 million tons by 2015 and this expansion forms an important part of that.”
"Everyone who has money is rushing to invest in iron ore," Baosteel Group chairman, Xu Lejiang said on Friday, warning that supply may outstrip demand “sooner than expected” pushing prices down in the process. Brazil’s Vale, and Australian heavyweights BHP and Rio Tinto have some $45bn slated for new mines. The cash price of 62%-iron ore shipped to China's Tianjin port has almost tripled from Nov. 21, 2008 when data became available, according to the Steel Index.
Two Chinese state-owned companies have invested over $73m for a roughly 30% interest in privately-owned Century Iron's plans to export iron ore extracted at several properties in Quebec and Newfoundland and Labrador in eastern Canada. The transactions are part of $115.5m of financing arranged by Century Iron through private placements and the amalgamation of Century Iron Mines Corp. and Century Iron Ore Holdings.
To hear the mainstream media tell it, the commodities bubble has burst. Commodities are plunging across the board in response to the latest U.S. data, most of which seems to suggest that the American economic recovery is waning. Oil, which closed at $100 a barrel yesterday, was particularly hard hit, which is why so many suggest the commodities bubble has met its end.
Valuations of iron ore companies have been cut in response to Western Australia's controversial royalty increase, with Andrew Forrest's fast-growing Fortescue Metals taking the biggest hit. The valuation hits were despite the protection from state the protection from state royalty increases that the miners negotiated last year with the federal government in the reworked - and less onerous - minerals resource rent tax.
Reforms by Guinea's first freely elected government are needed to clean up a mining sector in disarray after decades of political turmoil, but they risk scaring off investors if they go too far too fast. The world's top bauxite supplier and a new frontier for iron ore, Guinea is rewriting its mining code, probing joint venture deals, and has dealt tough blows to major firms since the election of President Alpha Conde last November.
Latin America used to be known for its economic and political instability. But it fought off the global financial crisis with relative ease. Poverty is now falling, the middle classes are growing rapidly and asset […]
Cliffs Natural Resources announced that underground mining operations at its Oak Grove mine in Alabama, have now resumed after being stopped abruptly 2 weeks ago - after the mine was hit by severe weather, including a tornado storm on April 28th.
May 19 (Bloomberg) -- China’s stocks fell for the first time in three days, led by property developers and power producers, on concern the central bank will boost borrowing costs and higher energy costs will hurt corporate earnings. Poly Real Estate
The Western Australian government on Thursday introduced a phased increase on its royalty rates applying to iron-ore mines, a move it says will create A$1.9bn in additional revenue. Australia’s Association of Mining & Exploration Companies […]
Reuters reports that world number three supplier India's iron ore exports and prices could be hit by quality issues raised by China on $2.2bn worth of shipments. India sends almost all its exports to China, trade worth around $1.5bn per month. During the first four months of 2011, over a third of India's exports to the Chinese province of Jiangsu were substandard, China's General Administration of Quality, Supervision, Inspection and Quarantine said in a notice posted on its website.
Lakeside Steel Inc.today announced that it has completed its bought deal short-form prospectus offering of 44,275,000 common shares at a price of $0.52 per Common Share for total gross proceeds of $23,023,000. The Offering includes the exercise of the underwriters' over-allotment option in full.
Ausenco has been awarded a $7million contract to deliver the detailed engineering for a 401 km iron ore pipeline for Samarco Mineração S. A. The iron concentrate slurry pipeline is part of Samarco’s expansion and will be the third pipeline for the project. It will link the Germano mine in Mariana, Brazil to the industrial complex at Ubú, Brazil and will have a nominal capacity of 20 Mt/y. Read more