1. Los Angles Times: Chinese steel industry group opposes proposed Rio Tinto-BHP venture as monopolistic
The China Iron and Steel Association vehemently opposes a proposed venture between BHP Billiton and Rio Tinto, calls partnership monopolistic. China’s steelmakers are cautious of any move that could give suppliers more power during price negotiations. The Australian miners announced Friday their intentions to combine their Western Australian iron ore assets after Rio Tinto called off its $19.5 billion investment from Chinalco.
2. The Australian: BHP Billiton cuts Indonesia coalmine
BHP Billiton abandons its Indonesian coal assets, scraps plans for further investments. The miner has determined the $100 million Haju coking coal trial mine does not fit with its long-term investment strategy. The mine was expected to support operations of 3-5 million tonnes per year.
3. The Associated Press: Report: Iron ore shipments down on Great Lakes
The Lake Carriers’ Association reports lower than average iron ore shipments on the Great Lakes. May’s shipments totaled 3 million tons, a 60% decline from a year ago. The association claims the drop in shipments is due to the low demand for steel.
4. Reuters: UPDATE 2- Consolidated Thompson finalizes WISCO deal
China’s Wuhan Iron and Steel Corp agrees to purchase 38.7 million shares of Consolidated Thompson for $240 million. The agreement will allow WISCO the right to nominate a director to Consolidated’s board. The two companies are planning to joint develop the Bloom Lake iron ore project.
5. Timmins Daily Press: Safety issues force nickel mine closure
Xstrata extends shutdown of its Montcalm Mine after a geotechnical review showed structural damage. Operations were temporarily suspended in March 2009. Xstrata pledges to complete further investigations to understand the full extent of the damage and to learn of future options for the mine.
6. The Australian: China set to buckle on iron ore price
Industry analysts expect Chinese steel mills to accept iron ore negotiations in line with Japanese and Korean deals. The China Iron & Steel Association earlier reported it would not accept a 33% cut in benchmark prices and demanded more. The organization would not comment on its purported new plan for iron ore negotiations.
7. The Associated Press: Chinese rescuers attempt to save 27 trapped miners
Landslide buries an iron ore plant and several homes, rescues search for trapped miners. The slide buried the Jiwei Mountain iron ore mine located in southwestern China. Rescuers believe miners could still be trapped hundreds of feet below ground.
8. Business Standard: SAIL, RINL negotiate FY10 coking coal at 60% discount
Indian steelmakers SAIL and RINL finalize negotiations for the current fiscal’s long-term coking coal prices. The steelmakers have agreed to prices that are 60% lower than last year, between $115-125 per tonne.
9. Reuters: Lundin says Tenke mine in DRC beating expectations
Part owner Lundin Mining reports its Tenke-Fungurume copper-cobalt mine is exceeding production expectations and should beat long-term forecasts. The Democratic Republic of Congo mine is majority-owned and operated by Freeport-McMoRan Copper and Gold.
Inmet Mining Corp expands its previously announced bought deal by more than one million shares; stock drops nearly 7% in response. Inmet will increase its equity bought deal to 7.825 million shares up from 6.75 million shares in order to raise $48 million more. The increased offer is expected to dilute outstanding shares by approximately 16%.
