1. Reuters: Brazil iron ore miner MMX gets offer from Wuhan
China’s Wuhan Iron and Steel presents a nonbinding offer for a minority stake in Brazilian iron ore miner MMX. MMX entered into negotiations with Wuhan in May. The proposed offer would give Wuhan a 23 percent equity interest for the purchase price of $280 million.
2. The Australian: Fortescue looks at ore port options
Fortescue Metals and Aquila Resources consider joining efforts to develop a second iron ore port in Western Australia: commission study. Fortescue has long term plans to boost capacity beyond 120 million tonnes, and is also fighting for third party use of BHP Billiton’s and Rio Tinto’s private railways.
3. The Associated Press: Court OKs dumping gold mine waste in lake
The Supreme Court allows the Kensington gold mine to dump waste into a nearby 23-acre lake. Environmentalist worry the ruling could lead to the easing of requirements on how mining companies dispose their mining waste. The court voted six to three against a federal appeals court that blocked the Army Corps of Engineers’ waste disposal permit on environmental grounds.
4. AFP: Arcelor Mittal, Vale agree cut in iron ore price
ArcelorMittal and Vale agree to 28.2-48.3% iron ore price cuts for new supply contracts. The price decreases vary on the category of ore. ArcelorMittal said the negotiations with Vale were of great importance due to Vale’s size as a supplier.
5. Bloomberg.com: China’s Iron Ore Purchase Talks Won’t End by June 30, CCTV Says
China Central Television cites unidentified industry officials to conclude 2009 price talks with iron ore suppliers are unlikely to meet a June 30 deadline. Chinese steelmakers are trying to hold out for producers to cut contract prices by up to 50%.
6. Reuters India: Govt plans iron ore royalties linked to price
India’s Mining Minister announces plans to link iron ore royalties to market prices rather than a fixed rate. The government did not release the level of the royalty, but some believe the rate is likely to be 10% of the sale price before freight costs.
7. Brisbane Times: Gindalbie secures $162m Ansteel approval
Gindalbie Metals meets its final condition for its $162 million share placement to Ansteel: secures Chinese government approval. Australian regulators signed off on the proposed transaction in May. Ansteel will contribute $143.68 million to complete funding requirements for Gindalbie’s Karara Iron Ore Project.
8. Reuters: Mechel’s owner pledges 38 pct stake as collateral
Owner Igor Zyuzin places 38% of the Mechel’s shares up as collateral to obtain unspecified financing. The financing document was filed with the U.S. Securities and Exchange Commission on June 19. Mechel has struggled under $5.4 billion in debt as is considered to be most heavily indebted Russian coal and steel producers.
9. Melbourne Herald Sun: 174 Xstrata staff face the axe
A Hunter Valley mine is expected to be placed on care and maintenance in March 2010. Xstrata Coal said the first start of layoffs would start in September. The closure will affect 174 full time employees; Xstrata officials hope to redeploy staff to other its other coalmines in the area.
10. Bloomberg.com: Macarthur Says Demand for Coking Coal Showing Recover Signs
Australia’s Macarthur Coal sees China’s shipments on the rise; claims metallurgical coal market is showing tentative signs of recovery. The miner now believes coking coal contract prices may gain 8.5% next year, revising its earlier forecast for a 15% decline.
