Ore and More Top Ten

1. The Australian: BHP, Rio face ore asset sale to pass WA merger plan

Regulators expected to require Rio Tinto and BHP Billiton to divest some iron ore assets to obtain approval for their planned merger of their West Australian operations. Rio calculates the miners’ could save $10 billion or more in synergies. Rio released a $15.2 billion rights issue last night.

2. Reuters: Hopes for Xstrata-Anglo union to be thwarted

Xstrata’s interest in rival Anglo American rekindled in the wake of the recent deal between BHP Billiton and Rio Tinto; miner cautiously moves forward with merger plans. Some Anglo investors have voiced concern over the Anglo’s recent underperformance and believe Xstrata management team should take the lead.  

3. Bloomberg.com: India’s Steel Ministry Proposes Additional Tax on Cheap imports

India’s steel ministry considers options to control unfair competition. The ministry is proposing placing temporary additional tax on cheap imports. Some countries are offering steel at lower prices than those in India leading to a jump in imports and wreaking havoc on domestic producers.

4. The Hindu: Bhilai Steel Plant targets 5.8 mn tonnes annual output

Bhilai Steel Plant sets target for its 2009-2010 hot metal production. The plant is the largest unit of Steel Authority of India and is expected to produce 5.8 million tonnes of hot metal, 5.53 million tones of crude steel and 4.77 million tones of saleable steel, all increases from last year’s output.

5. The Canadian Press: Uranium One to acquire 50 per cent interest in Kazakhstan mine

Uranium One’s proposed 50% acquisition in a Kazakhstan mine will boost production by 35% in 2010. The Canadian based miner is purchasing the interest stake from Russian state-owned miner ARMZ. Uranium One has plans to build a sulphuric acid plant to service the mine’s surrounding area. 

6. Bloomberg.com: Goldman Forecasts 10% Gain in 2010 Iron Ore Price (Update 1)

Goldman Sachs analysts predict iron ore prices to rebound 10% next year on rising imports. While Japanese and South Korean steel mills won a 33% cut in contract prices this year, the balance of power is expected to swing back to suppliers in 2010. 

7. Business Standard: SAIL gets Jharkhand gov’t nod for Chiria mines

Jharkhand government hands down long awaited mining leases to Steel Authority of India. The four Chiria iron ore mines are estimated to possess nearly 2 billion tonnes of iron ore.

8. The Sydney Morning Herald: Lihir slashes gold mine value

Ballarant mine reduces forecast output: Lihir Gold to take a one-time charge of as much as $473 million. The gold mine is now expected to produce 20,000 ounces this year, less than half it earlier estimates of 50,000 ounces. Lihir has struggled to meet production targets since it acquired the mine in 2006.

9. Reuters: Vale-BHP venture cuts iron ore price to Krakatau Steel

Samarco cuts its iron ore pellets prices for Indonesia’s Krakatau Steel by 48.3%. Samarco is an iron ore joint venture between BHP Billiton and Vale. 

10. The Australian: Atlas Iron to raise $117m to fund Pilbara projects

Atlas Iron to raise millions for its Pilbara operations expansion. The Australian iron ore miner will raise most of the capital through a $105 million placement. Atlas intends to boost output at its Pardoo project and start production at two other Western Australian projects.