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Posts Tagged ‘Iron Ore Mine’

Iron Ore, Metal News

February 22, 2010

Baffinland May Develop Nunavut Iron Mine in 2010

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It is said from president and CEO of Baffinland Iron Mines Corp. that it may be able to secure the cash to develop an iron mine in Nunavut this year.

Gordon McCreary said Sunday that Baffinland needs to raise at least $4 billion to develop the Mary River site 160 kilometres south of Pond Inlet on northern Baffin Island.

At least $1 billion of that funding must come from a partner for the project to proceed, he added.

“My view is that that will happen in 2010,” McCreary told reporters on Sunday, during a company-led tour of the Mary River site.

“If, for whatever reason, it doesn’t happen in 2010, my job as the CEO of this company is to make sure that we’re bridged into 2011, because it will happen in 2011.”While no deep-pocketed partners have come forward to date, economists predict that rising demand for iron ore will soon drive up prices, perhaps by as much as 30 per cent.

“It increases investor interest in them, and also increases the chance of getting that kind of strategic investment,” said Patricia Mohr, vice-president of industry and commodity research with Scotiabank.

McCreary said an investment would have made by now, had it not been for the global financial crisis that hit in 2008.

Baffinland organized Sunday’s tour for politicians, bureaucrats and journalists to view the Mary River site during the high-level meeting of G7 finance ministers and central bank governors in Iqaluit over the weekend.

None of the foreign finance ministers attended the tour, but McCreary said he met with Canadian Finance Minister Jim Flaherty for 45 minutes.

McCreary said he also met with the finance minister of Germany, which offered Baffinland $1.2 billion in loan guarantees last year.

Iron Ore, Metal News

January 18, 2010

China Discovered 5 bln Tonnes of Iron Ore Deposites

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It was reported from the government that China discovered five billion tonnes of iron ore deposits last year.

More than three billion tonnes were located in the northeastern province of Liaoning, with the rest found in Hebei, Shandong, Anhui and Sichuan, said Zhang Hongtao, chief engineer of the Ministry of Land and Resources.

One billion tonnes of reserves in Hebei would be easy to mine because of their shallow depth, said Zhang, quoted in a statement posted on the ministry’s website on Friday.

China, the world’s biggest producer of steel, is also the largest importer of iron ore, importing around 50 percent — or 443.45 million tonnes — in 2008.

Steel production over the first nine months of last year added up to 618.6 million tonnes, according to the China Iron and Steel Association.

Each year, Chinese steelmakers enter bitter negotiations with the world’s top three mining giants — Brazil’s Vale and Anglo-Australian companies Rio Tinto and BHP Billiton — over the price they will pay for iron ore.

Annual iron ore pricing negotiations traditionally begin with Japan around November and take place alongside similar negotiations. China and Beijing’s massive imports have been a prime driver for price rises in the past few years.

The three firms have sidelined Beijing from annual talks to set a benchmark contract price, the Financial Times reported earlier this week.

The companies plan to present a “take it or leave it” price to Chinese steel mills once negotiations with Japan are complete, the report said.

Iron Ore, Metal News

December 29, 2009

New Iron Ore Found in China Hebei

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It was said from the China Metallurgical Geology Bureau over the weekend that exploration work in the eastern region of north China’s Hebei Province shows potential iron ore reserves in this area are estimated to top 10 billion tons.

A total of 3.44 billion tons of iron ore have been verified in five mines in the province, said Yan Xueyi, the bureau’s director.

The discovery of this deposit would largely ease the shortfall in China’s domestic iron ore supplies and contribute to a sound and sustainable development of the country’s steel industry, according to Yan.

China imported 443.56 million tons of iron ore in 2008, bringing the country’s reliance on imported iron ore to around 50 percent.

The country’s steel mills suffered an unfavorable position during the annual iron ore pricing talks as overseas miners allied to ask for a higher price.

Iron Ore, Metal News

Guangdong Rixin Buys Iron Mine

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It was reported from the local media that Guangdong Province-based Rixin Development, a privately-owned company, has reached an agreement to buy a majority ownership in a foreign iron ore mine.

Rixin Development inked a deal Saturday to acquire a 70 percent stake in an iron ore mine in Chile, the Guangzhou Daily newspaper reported Sunday. Financial details were not disclosed.

Rixin Development, which declined to release any information about its major businesses or registration, is listed on the local enterprise information website as a “trader for home appliances, textiles, auto parts and so on, and importer and exporter of various products and technologies.”No further information about the company could be found online.

The deal would promote the participation of the country’s qualified privately-owned companies in the overseas mining industry, and might lead to the restructuring of the iron ore importing market in two or three years, said Liu Weidong, general manager of Rixin’s iron ore marketing partner, the Zhuhai-based Guangdong branch of State-owned miner and mineral trader China Minmetals, as quoted by Guangzhou Daily.

Privately-owned companies are in a better position to invest in overseas natural resources, said Li Zihao, president of Rixin, as quoted in the report.

“A government background may trigger alertness when it come to State-owned enterprises buying foreign mines,” said a Beijing-based steel analyst who preferred not to be named. The Chinese government is spurring enterprises to purchase natural resources overseas, especially iron ore.

Chinese State-owned giant Chinalco’s $19.5 billion bid for Aussie iron ore giant Rio Tinto, one of the world’s largest iron ore miners, was disapproved in early April by Rio Tinto’s board.

Privately-owned enterprises are more flexible in dealing-making, said Wang Zhe, a steel analyst with Beijing-based CITICS Securities Research. Wang expects iron ore prices for 2010 to grow more than 10 percent over 2009, as China’s economy keeps recovering and steel production grows.

China produced 560 million tons of steel in the first 10 months of the year, up 15.4 percent from the same period last year, according to figures from the China Iron and Steel Association.