1. The Sydney Morning Herald: China readies to take on iron ore giants
China’s official news agency reports China’s iron and steel industries are actively searching for mergers and integrations to strengthen its bargaining power against the proposed merger between BHP Billiton and Rio Tinto. The two iron ore producers share over a 30% market share in the global iron ore market.
2. Bloomberg.com: Coal India Unit to Boost Production on Demand From Steelmakers
Bharat Coking Coal aims to increase production by nearly 8% over the next year. India’s biggest coal producer forecasts production at 4.3 million metric tons in the year ending March 31, 2011, compared to this year’s 4 million tons.
3. The Australian: Atlas Iron to conclude Ridley sale in 2010
Goldman Sachs readies Atlas Iron’s Ridley project for sale; project expected to fetch between $150-$200 million. A possible sale could include a majority stake interest or the entire project.
4. Reuters: UPDATE 1- Mechel posts 2nd straight quarterly profit
Mechel’s third-quarter net profit of $132 million exceeds forecasted expectations near $60 million. The Russian steel and coking coal producer reported its second consecutive quarterly profits. Results were still far off last year’s $535 million net profit during the same period.
5. The Toronto Star: Canadian mine in Mexico shut down due to environmental concerns
Mexico’s Ministry of Environments shuts down a mine in the Chiapas state over alleged infractions including the building of roads without authorization, polluting, and emitting toxic emissions. The mine is owned by Canadian based Blackfire Explorations.
6. The Sydney Morning Herald: UMC drops hurdle for takeover by BHP Billiton
United Minerals Corporation drops its planed rights issue: junior miner’s board recommends BHP Billiton’s takeover deal. United’s main asset is the Railway iron ore deposit in the Pilbara region. BHP Billiton submitted its bid for the miner nine days after United announced its rights issue.
7. Bloomberg.com: Felix Shareholders Approve $3.2 Billion Yanzhou Coal Takeover
Felix Resource’s shareholders consent to Yanzhou Coal Mining Co. $3.2 billion takeover offer. Chinese authorities are expected to approve the proposed acquisition within a few days. Australian authorities authorized the takeover in October.
8. Australia Broadcasting Corporation: Xstrata investment near Cloncurry ‘a vote of confidence’
Queensland’s State Government gives Xstrata the green-light to extend the life of its Ernest Henry mine by another 12 years. The mine will be extended from an open cut operation to an underground mine. Xstrata will invest around $600 million into the project.
9. The Salt Lake Tribune: Utah coal firm buying Chinese coking plant
American West Resources signs a binding letter of intent to purchase the Luxin coal plant in northeastern China. The U.S. based company will spend $40 million to acquire a 70% interest in the company through a 30-year joint venture, with another $30 million promised towards expansion capital.
10. Reuters: UPDATE 1- Congo mine strike not hurting production –Freeport
Strikers at Freeport’s Tenke Fungurume copper and cobalt mine return to work at the urging of government labor officials. The workers staged the non-violent stoppage on Friday. The Democratic Republic of Congo is reviewing Freeport’s mining contacts.
