Monday, 31 Oct 2011
Earlier this year the Full Court of the Federal Court of Australia unanimously ruled that the service provided by Rio Tinto's Pilbara rail lines should not be declared as being available for access to third parties.
Rio release said that “Today the High Court of Australia granted Fortescue Metals Group Ltd and the National Competition Council leave to pursue appeals in relation to the decision of the Full Federal Court.”
The release added “No date has been set for the hearing of these appeals but it is expected that they will be listed in the first half of 2012.”
It also said “Rio Tinto maintains that the potential costs of access far exceed any theoretical benefits. This was accepted in the findings of the Australian Competition Tribunal. Rio Tinto will therefore take all appropriate steps to defend these appeals.”
Showing posts with label Pilbara region. Show all posts
Showing posts with label Pilbara region. Show all posts
Monday, October 31, 2011
Saturday, October 29, 2011
Australian coal assets are overpriced - Mr Mende
Saturday, 29 Oct 2011
Bloomberg quoted AMCI Capital LP a private equity investor in coal, iron ore and base metals said Australia coal assets are expensive making acquisitions challenging.
Mr Hans Mende president of Greenwich, Connecticut based AMCI said “We’re always looking but it’s difficult. Australian assets are overpriced.”
He said “Our business model is basically greenfield development. He added that I believe Aquila will get their funding for their share.”
AMCI owns stakes in Australian resources companies including Aquila Resources Ltd and Whitehaven Coal Ltd. AMCI held shares in Felix Resources Ltd which China Yanzhou Coal Mining Co Ltd bought in 2009 for AUD 3.5 billion.
AMCI isn’t interested in buying Australia New Hope Corp a coal producer with mines in Queensland State that last month said it’s starting a formal process for sale after receiving several offers.
AMCI is an equal partner with Aquila in the AUD 5.2 billion West Pilbara Iron Ore Project that includes a mine and port development to ship the steelmaking ingredient from Western Australia Pilbara region. Aquila is selling two projects and is seeking to raise USD 2 billion in debt to help pay for its share in the venture.
(Sourced from Bloomberg)
Bloomberg quoted AMCI Capital LP a private equity investor in coal, iron ore and base metals said Australia coal assets are expensive making acquisitions challenging.
Mr Hans Mende president of Greenwich, Connecticut based AMCI said “We’re always looking but it’s difficult. Australian assets are overpriced.”
He said “Our business model is basically greenfield development. He added that I believe Aquila will get their funding for their share.”
AMCI owns stakes in Australian resources companies including Aquila Resources Ltd and Whitehaven Coal Ltd. AMCI held shares in Felix Resources Ltd which China Yanzhou Coal Mining Co Ltd bought in 2009 for AUD 3.5 billion.
AMCI isn’t interested in buying Australia New Hope Corp a coal producer with mines in Queensland State that last month said it’s starting a formal process for sale after receiving several offers.
AMCI is an equal partner with Aquila in the AUD 5.2 billion West Pilbara Iron Ore Project that includes a mine and port development to ship the steelmaking ingredient from Western Australia Pilbara region. Aquila is selling two projects and is seeking to raise USD 2 billion in debt to help pay for its share in the venture.
(Sourced from Bloomberg)
Friday, October 28, 2011
Fortescue and NCC granted leave to appeal for rail network access in Pilbara
Friday, 28 October 2011
Australian miner Rio Tinto has announced that the High Court of Australia has granted Fortescue Metals Group Ltd and the National Competition Council (NCC) permission to appeal the decision of the Full Federal Court regarding third party utilization of the Pilbara rail lines in Western Australia.
As SteelOrbis previously reported, the Full Federal Court has endorsed the decision of the Australian Competition Tribunal not to open Australian miner Rio Tinto's Hamersley rail network in the Pilbara region to third party utilization.
Rio Tinto stated that no date has been set for the hearing of these appeals but it is expected that they will be listed in the first half of 2012. Rio Tinto said it will take all appropriate steps against the appeals in question.
Tags: iron ore , Australia , Rio Tinto , Fortescue , raw mat , Oceania , mining
sourced steelorbis
Australian miner Rio Tinto has announced that the High Court of Australia has granted Fortescue Metals Group Ltd and the National Competition Council (NCC) permission to appeal the decision of the Full Federal Court regarding third party utilization of the Pilbara rail lines in Western Australia.
As SteelOrbis previously reported, the Full Federal Court has endorsed the decision of the Australian Competition Tribunal not to open Australian miner Rio Tinto's Hamersley rail network in the Pilbara region to third party utilization.
Rio Tinto stated that no date has been set for the hearing of these appeals but it is expected that they will be listed in the first half of 2012. Rio Tinto said it will take all appropriate steps against the appeals in question.
Tags: iron ore , Australia , Rio Tinto , Fortescue , raw mat , Oceania , mining
sourced steelorbis
Tuesday, October 25, 2011
Nimble FMG puts pressure on larger rivals in iron ore race
Tuesday, 25 Oct 2011
It is reported that the push to quickly ramp up iron ore production in Western Australia vast Pilbara region is very much a race between the nation three big iron ore miners Rio Tinto, BHP Billiton and Fortescue Metals Group.
The prize for faster expansion is longer access to windfall prices, which will probably fall as new supply emerges. Tonnes brought to market later will get lower prices.
Mr Nev Power CEO of Fortescue said "The sooner you can bring more volume into the market, the sooner you enjoy the high prices and high returns. He said that but every tonne that comes into the market will start to ease the supply bottleneck and therefore bring the price down."
Mr Power who took the chief executive job from Fortescue founder and major shareholder Andrew Forrest in July is continuing a strategy already in place when he joined. He said that "Our current strategy is very much about taking the opportunity of this strong demand out of China and responding to that with very rapid development and ramp-up of our projects.”
He added that "We recognize that these opportunities don't last forever and we recognize that the strong growth of China needs to be satisfied. Therefore the primary plank of our strategy has been to get in very quickly and meet that demand and to fuel that growth."
Fortescue has approved plans to triple its production to 155 million tonnes a year by June 2013 and if markets remain strong and it plans to move to 350 million tonnes four years after that.
Fortescue ambition to increase annual production capacity by 300 million tonnes in six years compares with BHP's plan to grow by 200 million tonnes to 350 million tonnes a year in eight years and Rio plan to add 100 million tonnes to 333 million tonnes in four years.
(sourced TheAustralian)
It is reported that the push to quickly ramp up iron ore production in Western Australia vast Pilbara region is very much a race between the nation three big iron ore miners Rio Tinto, BHP Billiton and Fortescue Metals Group.
The prize for faster expansion is longer access to windfall prices, which will probably fall as new supply emerges. Tonnes brought to market later will get lower prices.
Mr Nev Power CEO of Fortescue said "The sooner you can bring more volume into the market, the sooner you enjoy the high prices and high returns. He said that but every tonne that comes into the market will start to ease the supply bottleneck and therefore bring the price down."
Mr Power who took the chief executive job from Fortescue founder and major shareholder Andrew Forrest in July is continuing a strategy already in place when he joined. He said that "Our current strategy is very much about taking the opportunity of this strong demand out of China and responding to that with very rapid development and ramp-up of our projects.”
He added that "We recognize that these opportunities don't last forever and we recognize that the strong growth of China needs to be satisfied. Therefore the primary plank of our strategy has been to get in very quickly and meet that demand and to fuel that growth."
Fortescue has approved plans to triple its production to 155 million tonnes a year by June 2013 and if markets remain strong and it plans to move to 350 million tonnes four years after that.
Fortescue ambition to increase annual production capacity by 300 million tonnes in six years compares with BHP's plan to grow by 200 million tonnes to 350 million tonnes a year in eight years and Rio plan to add 100 million tonnes to 333 million tonnes in four years.
(sourced TheAustralian)
Friday, August 19, 2011
Atlas Iron increased iron ore reserve in North Pilbara by 50pct
Friday, 19 Aug 2011
The West Australian reported that Atlas Iron has increased its iron ore reserves in the North Pilbara by 50%.
Atlas said its reserves in the region were estimated now at 79.3 million tonnes.
Atlas North Pilbara projects include the Pardoo and Wodgina mining operations as well as the Mt Dove, Abydos, Mt Webber and McPhee Creek development projects.
Atlas holds 70% of the Mt Webber project a joint venture with Altura Mining and 75% of the Daltons project in joint venture with Haoma Mining.
The company in a statement said that "Atlas is now an established iron ore producer and exporter with strong customer relationships. The company has achieved significant growth in resources and reserves in the same period where we expanded production by 600%."
Atlas said it was continuing to focus on reserve conversion in the North Pilbara with up to five drill rigs in the field. It said further infill drilling designed to extend and upgrade resources is underway or proposed at Wodgina, Abydos and Mt Webber.
The upgrade was not enough to lift Atlas shares from the wave of negativity on world markets with the miner falling eight cents or 2.13% to USD 3.67 by 8.25 AM.
(sourced The West Australian)
The West Australian reported that Atlas Iron has increased its iron ore reserves in the North Pilbara by 50%.
Atlas said its reserves in the region were estimated now at 79.3 million tonnes.
Atlas North Pilbara projects include the Pardoo and Wodgina mining operations as well as the Mt Dove, Abydos, Mt Webber and McPhee Creek development projects.
Atlas holds 70% of the Mt Webber project a joint venture with Altura Mining and 75% of the Daltons project in joint venture with Haoma Mining.
The company in a statement said that "Atlas is now an established iron ore producer and exporter with strong customer relationships. The company has achieved significant growth in resources and reserves in the same period where we expanded production by 600%."
Atlas said it was continuing to focus on reserve conversion in the North Pilbara with up to five drill rigs in the field. It said further infill drilling designed to extend and upgrade resources is underway or proposed at Wodgina, Abydos and Mt Webber.
The upgrade was not enough to lift Atlas shares from the wave of negativity on world markets with the miner falling eight cents or 2.13% to USD 3.67 by 8.25 AM.
(sourced The West Australian)
Thursday, August 18, 2011
Rio Tinto says restarting iron ore mines after fatality
Thu Aug 18, 2011
SYDNEY Aug 18 (Reuters) - World no. 2 iron ore producer Rio Tinto RIO.L> said on Thursday it was resuming normal operations at two mines in Australia shut this week after a worker was fatally injured.
Rio Tinto on Tuesday suspended mining at its Brockman 2 and the adjacent Nammuldi mines, which together account for 15 million tonnes of annual production, or 6 percent of the company's worldwide production.
"Operations will progressively return to normal during the course of the day," a company spokesman said.
He said investigations were continuing into how the 27-year-old man was fatally injured while working on loading equipment.
The Nammuldi deposit currently yields about 6 million tonnes of ore a year. The Brockman 2 mine produces around 9 million tonnes a year.
Rio Tinto expects to produce about 240 million tonnes of iron ore in total in 2011.
The mines are located roughly 60 km (40 miles) northwest of Rio Tinto's Tom Price iron ore hub in the Pilbara iron belt region.
(sourced Thomson Reuters)
SYDNEY Aug 18 (Reuters) - World no. 2 iron ore producer Rio Tinto RIO.L> said on Thursday it was resuming normal operations at two mines in Australia shut this week after a worker was fatally injured.
Rio Tinto on Tuesday suspended mining at its Brockman 2 and the adjacent Nammuldi mines, which together account for 15 million tonnes of annual production, or 6 percent of the company's worldwide production.
"Operations will progressively return to normal during the course of the day," a company spokesman said.
He said investigations were continuing into how the 27-year-old man was fatally injured while working on loading equipment.
The Nammuldi deposit currently yields about 6 million tonnes of ore a year. The Brockman 2 mine produces around 9 million tonnes a year.
Rio Tinto expects to produce about 240 million tonnes of iron ore in total in 2011.
The mines are located roughly 60 km (40 miles) northwest of Rio Tinto's Tom Price iron ore hub in the Pilbara iron belt region.
(sourced Thomson Reuters)
Tuesday, August 16, 2011
Australia’s Federal Court decides in favor of Fortescue on mining leases
August16,2011
Australian miner Fortescue Metals Group Limited (Fortescue) has announced that the Federal Court of Australia has made its final decision regarding the appeal by the Yindjibarndi native title claim group against previous decisions of the Western Australian government to grant mining leases to Fortescue for its Solomon Hub mining operation.
The Federal Court has unanimously dismissed the Yindjibarndi native title claim group's appeal against the previous grant of these mining leases to Fortescue.
According to the company statement, the project at Solomon Hub is continuing both to schedule and budget. The Federal Court decision allows Fortescue to continue with its expansion plan in the Pilbara region of Western Australia. Fortescue has been trying to increase its annual output to 155 million mt per year from 55 million mt per year under these leases.
The Federal Court has unanimously dismissed the Yindjibarndi native title claim group's appeal against the previous grant of these mining leases to Fortescue.
According to the company statement, the project at Solomon Hub is continuing both to schedule and budget. The Federal Court decision allows Fortescue to continue with its expansion plan in the Pilbara region of Western Australia. Fortescue has been trying to increase its annual output to 155 million mt per year from 55 million mt per year under these leases.
Thursday, June 2, 2011
BHP iron ore train derailment shuts key line for days
Jun1,2011
SYDNEY, June 2 (Reuters) - Global miner BHP Billiton suffered a train derailment on one of its key iron ore routes in Australia's Pilbara region, which may impact its deliveries for the quarter, the Australian newspaper said on Thursday.
A train derailed on Saturday morning on BHP's Newman line, which connects Pilbara mines to Port Hedland, and operations resumed on Monday evening, the paper said.
BHP would not estimate the possible impact of the derailment on its sales figure. (Reporting by Balazs Koranyi, sourced Thomson Reuters)
SYDNEY, June 2 (Reuters) - Global miner BHP Billiton suffered a train derailment on one of its key iron ore routes in Australia's Pilbara region, which may impact its deliveries for the quarter, the Australian newspaper said on Thursday.
A train derailed on Saturday morning on BHP's Newman line, which connects Pilbara mines to Port Hedland, and operations resumed on Monday evening, the paper said.
BHP would not estimate the possible impact of the derailment on its sales figure. (Reporting by Balazs Koranyi, sourced Thomson Reuters)
Monday, March 28, 2011
Africa iron ore to hit Australia's trade
March 28, 2011 - 5:54PM By Alison Bell
Australia and Brazil's dominance of global iron ore pricing could be broken by a Pilbara-sized west African mining region that could undermine the nation's terms of trade, says Chicago-based economist Dale Hale.
At least 20 mines would open in the region spanning Liberia, Guinea, Sierra Leone, and the Cameroon by 2015 and their aggregate output could reach 600 million tonnes a year.
That's equivalent to 62 per cent of global production in 2012 and 38 per cent in 2015, the Mr Dale said during a visit to Melbourne.
"If we add this much supply, this could break the Australian-Brazilian cartel in setting iron ore prices," Mr Hale told AAP during an interview.
"This could finally set the stage for iron ore prices to decline in a meaningful way ... in five years."
Mr Hale said China had joined BHP Billiton and Rio Tinto's subsidiary RTZ Mining and Exploration as investors and explorers in the region.
Mr Hale is the founder of Chicago-based Hale Advisors and advises global asset management companies across the world including his role as a global economic adviser to Commonwealth Bank of Australia (CBA).
China was the world's biggest iron ore producer in 2010 according to a US geological survey, mining 900 million tonnes, or 37.5 per cent of global supply, all of which it retained to fuel its economic expansion.
China's iron ore is low-grade, unlike that of Australia and Brazil.
Australia was the biggest iron ore exporter and second biggest producer, supplying 17.5 per cent, while second largest exporter Brazil supplied 15.4 per cent.
Mr Hale warned that the west African supply surge could cut Australia's terms of trade - the quantity of imports that can be purchased by selling Australia's exports - because iron ore comprises over 25 per cent of total exports.
"It could depress your terms of trade after what has been an incredible boom," he said.
China's global sourcing ambition for iron ore was revealed in a speech by the chairman of the China Iron and Steel Association, Wu Xichun, at a Chinese government conference on commodities attended by Mr Hale earlier this month.
"In his speech (Mr Wu said) in the year 2015 China wanted to import half of its iron ore from Chinese-owned mines elsewhere in the world."
"(It will) be a big investor in the west African iron ore mines."
CBA chief economist Michael Blythe on Monday told CBA institutional banking clients in Melbourne that a slowdown in China or lower commodity prices could crimp Australian national income.
The commodity boom and positive China growth story had added $6,000 to Australia's gross domestic product per person over the past 12 years, Mr Blythe said.
"Effectively everybody in Australia has $6,000 worth of extra spending power per person per annum because of that China-driven commodity story over that 12-year period."
He said the Australian dollar was becoming a safe haven currency and was likely to stay strong over the long term,.
In the early hours of Saturday in offshore trading, the local unit set a post-float high of 102.94 US cents.
Brought to you by AAP
Australia and Brazil's dominance of global iron ore pricing could be broken by a Pilbara-sized west African mining region that could undermine the nation's terms of trade, says Chicago-based economist Dale Hale.
At least 20 mines would open in the region spanning Liberia, Guinea, Sierra Leone, and the Cameroon by 2015 and their aggregate output could reach 600 million tonnes a year.
That's equivalent to 62 per cent of global production in 2012 and 38 per cent in 2015, the Mr Dale said during a visit to Melbourne.
"If we add this much supply, this could break the Australian-Brazilian cartel in setting iron ore prices," Mr Hale told AAP during an interview.
"This could finally set the stage for iron ore prices to decline in a meaningful way ... in five years."
Mr Hale said China had joined BHP Billiton and Rio Tinto's subsidiary RTZ Mining and Exploration as investors and explorers in the region.
Mr Hale is the founder of Chicago-based Hale Advisors and advises global asset management companies across the world including his role as a global economic adviser to Commonwealth Bank of Australia (CBA).
China was the world's biggest iron ore producer in 2010 according to a US geological survey, mining 900 million tonnes, or 37.5 per cent of global supply, all of which it retained to fuel its economic expansion.
China's iron ore is low-grade, unlike that of Australia and Brazil.
Australia was the biggest iron ore exporter and second biggest producer, supplying 17.5 per cent, while second largest exporter Brazil supplied 15.4 per cent.
Mr Hale warned that the west African supply surge could cut Australia's terms of trade - the quantity of imports that can be purchased by selling Australia's exports - because iron ore comprises over 25 per cent of total exports.
"It could depress your terms of trade after what has been an incredible boom," he said.
China's global sourcing ambition for iron ore was revealed in a speech by the chairman of the China Iron and Steel Association, Wu Xichun, at a Chinese government conference on commodities attended by Mr Hale earlier this month.
"In his speech (Mr Wu said) in the year 2015 China wanted to import half of its iron ore from Chinese-owned mines elsewhere in the world."
"(It will) be a big investor in the west African iron ore mines."
CBA chief economist Michael Blythe on Monday told CBA institutional banking clients in Melbourne that a slowdown in China or lower commodity prices could crimp Australian national income.
The commodity boom and positive China growth story had added $6,000 to Australia's gross domestic product per person over the past 12 years, Mr Blythe said.
"Effectively everybody in Australia has $6,000 worth of extra spending power per person per annum because of that China-driven commodity story over that 12-year period."
He said the Australian dollar was becoming a safe haven currency and was likely to stay strong over the long term,.
In the early hours of Saturday in offshore trading, the local unit set a post-float high of 102.94 US cents.
Brought to you by AAP
Tuesday, March 22, 2011
Australian cyclones hit Rio Tinto Q1 iron ore output
Tue, Mar22 13:49:04
SYDNEY, March 22 (Xinhua) -- Global miner Rio Tinto Ltd said on Tuesday its first-quarter iron ore production in Western Australia 's Pilbara region would highlight the impact of the tropical cyclones in February.
Speaking at a conference in Perth on Tuesday, Rio Tinto Iron Ore chief executive Sam Walsh said, "We have only just regained momentum and our quarterly production report will highlight the impact."
Rio Tinto's current Pilbara capacity is 225 million tons a year and it is moving to expand output to 333 million tons a year by the end of 2015.
"We do not expect our expansion to stop at 333," Walsh said.
He told reporters that tight equipment supply from Japan after the recent Japanese earthquake and tsunami has affected on the miners' expansion efforts in terms of cost.
He said the company's Canadian iron ore operations were also expanding quickly to meet demand which was already heightened before the Japanese crisis.
Walsh said the magnitude of reconstruction in Japan was only just being realized.
"It is true to say that recovering, developing and developed economies continue to drive demand for iron ore," he said.
The company's Simandou iron ore mine project in Guinea in West Africa would be developed before the official target date of 2015, Walsh said.
"We are keen to produce tons earlier if infrastructure constraints can be removed," he said.
Editor: Xiong Tong
If you believe an article violates your rights or the rights of others, please contact us.
Friday, March 4, 2011
Heavy rains in Pilbara adversely affect Fortescue’s iron ore operations
Friday, 04 March 2011
Australian iron ore producer Fortescue Metals Group Limited (Fortescue) has announced that continued and heavy rainfall across the Pilbara region of Western Australia is impacting the company's mining operations.
According to a company release, the sustained wet weather events have caused significant flooding across the Pilbara resulting in extended access road closures and air access restrictions to Fortescue's mining operations, disrupting production.
Fortescue now estimates iron ore production of 8.5-9 million mt in the first quarter of 2011 down 500,000 mt compared to the previous guidance, assuming a return to normal weather conditions.
Fortescue is working to maximize production throughout the remainder of the quarter, the company said.
Fortescue Metals Cuts Quarterly Iron Ore Output Guidance
4March 2011
By Robb M.StewartBy Dow Jones
MELBOURNE -(Dow Jones)- Fortescue Metals Group Ltd. (FMG.AU), one of Australia's largest producers of iron ore, said Friday its output in the March quarter will be dented by continued heavy rainfall in Australia's Pilbara region.
The Perth-based company said it expects iron ore production to be between 8.5 million and 9 million metric tons, a reduction of 0.5 million tons from its previous guidance.
The sustained wet weather has caused significant flooding in the iron ore-rich Pilbara, which has closed roads and restricted air access to Fortescue's mining operations and disrupted production, it said.
The company said it working to maximize output throughout the remainder of the quarter.
Rio Tinto PLC (RIO) and BHP Billiton Ltd. (BHP) are the country's biggest producers of iron ore.
-Newswire
By Robb M.StewartBy Dow Jones
MELBOURNE -(Dow Jones)- Fortescue Metals Group Ltd. (FMG.AU), one of Australia's largest producers of iron ore, said Friday its output in the March quarter will be dented by continued heavy rainfall in Australia's Pilbara region.
The Perth-based company said it expects iron ore production to be between 8.5 million and 9 million metric tons, a reduction of 0.5 million tons from its previous guidance.
The sustained wet weather has caused significant flooding in the iron ore-rich Pilbara, which has closed roads and restricted air access to Fortescue's mining operations and disrupted production, it said.
The company said it working to maximize output throughout the remainder of the quarter.
Rio Tinto PLC (RIO) and BHP Billiton Ltd. (BHP) are the country's biggest producers of iron ore.
-Newswire
Monday, February 28, 2011
The war over third-party infrastructure access; Rio Tinto rejects Fortescue Metals Group's boast over rail access
March 01, 2011 12:00AM
By Andrew Burrell From The Australian
The war over third-party access to critical infrastructure in the Pilbara has escalated, with mining giant Rio Tinto rejecting billionaire Andrew Forrest's claim that his Fortescue Metals Group was the first to provide rail and port access to a junior miner.
In a statement released to the Australian Securities Exchange last week, Mr Forrest said Perth-based BC Iron had become the first miner with a stranded deposit to have its iron ore transported using another company's railway in the Pilbara. The ore came from the Nullagine project, a 50:50 joint venture between BC Iron and Fortescue, and was carried to Port Hedland using Fortescue's railway.
Mr Forrest hailed the move as "historic", saying it would prove to Rio and BHP Billiton that third-party access was possible despite their objections over many years.
"The final stake has been put into that lie," he said.
The comments angered Rio executives, who say Mr Forrest and BC Iron chief executive Mike Young were ignoring the fact that Rio's Hope Downs joint venture with Gina Rinehart's Hancock Prospecting had been producing and transporting iron ore for the past three years.
"Congratulations to Mike Young and BC Iron, but Andrew Forrest should know better. In fact, he does know better," a Rio spokesman said.
"Perhaps it simply slipped the minds of both men that Hancock Prospecting's iron ore has been routinely travelling on Rio Tinto's railways ever since December 2007. In fairness, it was a long time ago.
"I'm not surprised Andrew Forrest defines Hope Downs ore as not fitting his idea of what constitutes third-party ore, but he's just plain factually wrong. "Twenty six times a week, a train loaded with about 24,000 tonnes of iron ore leaves that mine, and that ore is not owned by Rio Tinto.
"It is owned by the Hope Downs JV, and it is marketed and sold as such. We are entitled to half of the proceeds, as is Hancock Prospecting."
A spokesman for Mr Forrest said he stood by the statements, saying the Nullagine JV operated differently to Hope Downs.
He said Rio had management control of the Hope Downs JV and once the ore left the mine it lost the Hope Downs "badge".
Tags : iron ore, steel mills, China, Australian Securities Exchange
In a statement released to the Australian Securities Exchange last week, Mr Forrest said Perth-based BC Iron had become the first miner with a stranded deposit to have its iron ore transported using another company's railway in the Pilbara. The ore came from the Nullagine project, a 50:50 joint venture between BC Iron and Fortescue, and was carried to Port Hedland using Fortescue's railway.
Mr Forrest hailed the move as "historic", saying it would prove to Rio and BHP Billiton that third-party access was possible despite their objections over many years.
"The final stake has been put into that lie," he said.
The comments angered Rio executives, who say Mr Forrest and BC Iron chief executive Mike Young were ignoring the fact that Rio's Hope Downs joint venture with Gina Rinehart's Hancock Prospecting had been producing and transporting iron ore for the past three years.
"Congratulations to Mike Young and BC Iron, but Andrew Forrest should know better. In fact, he does know better," a Rio spokesman said.
"Perhaps it simply slipped the minds of both men that Hancock Prospecting's iron ore has been routinely travelling on Rio Tinto's railways ever since December 2007. In fairness, it was a long time ago.
"I'm not surprised Andrew Forrest defines Hope Downs ore as not fitting his idea of what constitutes third-party ore, but he's just plain factually wrong. "Twenty six times a week, a train loaded with about 24,000 tonnes of iron ore leaves that mine, and that ore is not owned by Rio Tinto.
"It is owned by the Hope Downs JV, and it is marketed and sold as such. We are entitled to half of the proceeds, as is Hancock Prospecting."
A spokesman for Mr Forrest said he stood by the statements, saying the Nullagine JV operated differently to Hope Downs.
He said Rio had management control of the Hope Downs JV and once the ore left the mine it lost the Hope Downs "badge".
Tags : iron ore, steel mills, China, Australian Securities Exchange
Sunday, February 27, 2011
Moly Mines resume iron ore shipments at Spinifex Ridge project
Sunday, 27 Feb 2011, proactiveinvestors
Moly Mines said that iron ore shipments has resumed at its Spinifex Ridge project after operations were disrupted by bad weather.
The company said that a ship with 64,472 wet metric tonnes grading about 59% iron has set sail for China. It is one of the first shipments from the Pilbara region in Western Australia, where the Spinifex project is located, since a cyclone forced closure of the ports earlier this week.
Despite disruptions caused by the bad weather, the company said the project’s production rate is now expected to reach 1 million tonnes per annum in early second quarter. The production rate increase was originally planned for July 2011.
For 2011, the company said total iron ore production is budgeted at 0.82 million tonnes at an average free on board cost of AUD 60 to AUD 70 per tonne, before freight costs and government royalties.
Moly Mines also said it has resumed talks to secure the second half of a USD 466 million loan facility from China Export and Import Bank. As part of the loan facility, it received a loan commitment last month of up to USD 250 million from the China Development Bank.
Besides iron ore, the Spinifex Ridge project also contains molybdenum and copper resources.
The company said that a ship with 64,472 wet metric tonnes grading about 59% iron has set sail for China. It is one of the first shipments from the Pilbara region in Western Australia, where the Spinifex project is located, since a cyclone forced closure of the ports earlier this week.
Despite disruptions caused by the bad weather, the company said the project’s production rate is now expected to reach 1 million tonnes per annum in early second quarter. The production rate increase was originally planned for July 2011.
For 2011, the company said total iron ore production is budgeted at 0.82 million tonnes at an average free on board cost of AUD 60 to AUD 70 per tonne, before freight costs and government royalties.
Moly Mines also said it has resumed talks to secure the second half of a USD 466 million loan facility from China Export and Import Bank. As part of the loan facility, it received a loan commitment last month of up to USD 250 million from the China Development Bank.
Besides iron ore, the Spinifex Ridge project also contains molybdenum and copper resources.
Friday, February 25, 2011
Fortescue makes billion-tonne iron ore discovery
February 26, 2011 - 1:20AM
Fortescue Metals Group has announced the discovery of more than one billion tonnes of iron ore in Western Australia's Pilbara and aims to develop it rapidly.
The new project, named Nyidinghu, is about 35 kilometers south of Fortescue's first mine, Cloudbreak, and contained an inferred resource of 1.032 billion tonnes of ore at a grade of 58 per cent iron, the company said.
In a statement to the stock exchange issued several hours after the market closed, Fortescue said the 1.03 billion tonnes of high-grade Brockman ore was in the inferred category of Australia's mineral reporting code, the least proved-up category.
"The proximity of Nyidinghu to Fortescue's existing Chichester Hub mining operations and unique high-performance modern infrastructure boosts their collective value significantly," Fortescue said.
It said the high-phosphorus discovery could significantly increase its total production and be used to mix with lower phosphorus ore.
"The new Nyidinghu discovery will create a new high-value blend and thus extend the life of these mines," it said.
"Fortescue is commencing a feasibility study with a view to developing this deposit as rapidly as possible. This maiden estimate is expected to grow as further drill results come in."
Fortescue shares were put in a trading halt early in yesterday's market session at the company's request. Their last sale was at $6.50, up 4¢.
Fortescue is spending $8.4 billion expanding its mines in Western Australia to almost triple output to supply steel mills in China.
The average price of its ore in the second half of 2010 rose to $US138.50 a tonne from $67.58 a year earlier.
It said yesterday it now controlled almost 7 billion tonnes of hematite ore and a further 2.5 billion tonnes of magnetite ore.
BLOOMBERG, AAP
Tags:Chinchester Hub mining operations, Hematite ore, magnetite ore,
Atlas Iron share in Giralia exceeds 90 percent milestone
Friday, 25 February 2011Australian iron ore miner Atlas Iron Limited has announced that it holds 91.22 percent of the voting rights in fellow Australian iron ore mining company Giralia as of February 25.
As SteelOrbis previously reported, according to a statement made on February 4, Atlas had extended its approximately AU$828 million (US$831 million) off-market takeover bid for a 100 percent stake in Giralia Resources Limited which also operates in Australia's Pilbara region. Accordingly, the offer was extended until 5.00 pm, February 28, 2011 from February 11, 2011. The process started on January 11, 2011 with an acceptance condition of 90 percent. The company then changed its offer to unconditional.
The offer has been recommended by the board of Giralia, with the merger of the two Pilbara mining companies to create a group worth AU$2.5-3 billion.
"The two companies have deposits that either join or are very close to each other at Mt Webber, McPhee Creek, Beebyn Range and Western Creek. This merger is a great way to grow production, reduce operating costs, maximize cash flows and deliver significant value for all shareholders," Atlas' managing director David Flanagan commented in a previous statement.
As SteelOrbis also previously reported, Atlas had agreed to buy Perth-based metals developer Aurox Resources on March 10 last year in a deal worth AU$149 million at that date. The merger was completed by the end of August.
Tags: iron ore , raw mat , Australia , Oceania , investments , M&A , mining , AtlasAs SteelOrbis previously reported, according to a statement made on February 4, Atlas had extended its approximately AU$828 million (US$831 million) off-market takeover bid for a 100 percent stake in Giralia Resources Limited which also operates in Australia's Pilbara region. Accordingly, the offer was extended until 5.00 pm, February 28, 2011 from February 11, 2011. The process started on January 11, 2011 with an acceptance condition of 90 percent. The company then changed its offer to unconditional.
The offer has been recommended by the board of Giralia, with the merger of the two Pilbara mining companies to create a group worth AU$2.5-3 billion.
"The two companies have deposits that either join or are very close to each other at Mt Webber, McPhee Creek, Beebyn Range and Western Creek. This merger is a great way to grow production, reduce operating costs, maximize cash flows and deliver significant value for all shareholders," Atlas' managing director David Flanagan commented in a previous statement.
As SteelOrbis also previously reported, Atlas had agreed to buy Perth-based metals developer Aurox Resources on March 10 last year in a deal worth AU$149 million at that date. The merger was completed by the end of August.
(sourced:steelorbis)
Tuesday, February 22, 2011
Pilbara region takes cover as cyclone hits home
By Andrew Burrell
February 23, 2011 12:00AM
MAJOR petroleum and mining projects in Western Australia's Pilbara region were forced to suspend operations for the third time in a month yesterday as Tropical Cyclone Carlos battered the coast with 140km/h winds and heavy rain.
Loading of ships for export was halted after authorities at Port Hedland, which is used by iron ore miners BHP Billiton and Fortescue Metals Group, suspended operations due to the cyclone.
Plants across the Pilbara have experienced heavy rains that closed rail lines and roads.
A spokeswoman for Woodside Petroleum said production from its Enfield oilfield and Cossack Pioneer floating facility had stopped, while production from its Vincent oilfield remained shut-in due to planned maintenance.
Woodside chief executive Don Voelte said on Monday that plans for the $14 billion Pluto project near Karratha to be completed by August could be delayed by the wild weather in recent weeks, including Tropical Cyclone Bianca that hit the Pilbara last month.
The cyclones caused 20 days of lost production, which might not be recoverable, Mr Voelte said. "At this late stage of the project, it might be hard to make up any or all of that time," he said.
"It's a fact of life -- it's raining and raining and raining up there."
Apache Corporation said it halted production at its Stag and Van Gogh fields off Western Australia before Carlos, but output at Varanus Island continued.
On Monday, Rio Tinto warned that shipping volumes were likely to be affected this quarter as cyclones Carlos and Dianne hampered its operations.
Dianne moved further off the coast this week.
Fortescue said it was waiting to hear from the harbourmaster at Port Hedland as to when the port would reopen.
A spokeswoman for the port said it remained closed and on "yellow alert", although there was an expectation operations might resume late yesterday.
Smaller mine company Murchison Metals said its Jack Hills iron ore project in WA's mid-west had been suspended for at least 14 days because of heavy rain and floods, forcing at least two export shipments set to leave the port of Geraldton next month to be delayed.
(sourced:The Australian, Additional reporting:Dow Jones Newswires)
Tags:BHP Billiton, Australia's Fortescue Metals Group, Murchison Metals, Port of Geraldton, Australian iron ore shipment, raw material
Monday, February 21, 2011
Rio Tinto sees Q1 iron ore shipments affected by Pilbara cyclones
Mon Feb 21, 2011 7:36am GMT
SYDNEY Feb 21 (Reuters) - Global miner Rio Tinto says it expects cyclones affecting its coastal operations in Western Australia's Pilbara region to affect shipped tonnage for the first quarter of this year.
Rio Tinto said it had maintained operations at 14 mines in the region and there have been frequent interruptions at its Dampier and Cape Lambert operations from adverse weather.
(Reporting by Michael Smith; Editing by Clarence Fernandez)
Subscribe to:
Posts (Atom)
Posts
