Eurobench.com

voda 22 juni 2011 20:45

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Rio Tinto to exercise its remaining warrants in Ivanhoe Mines

Rio Tinto has given notice to Ivanhoe Mines Ltd that it is exercising its remaining warrants, which will increase its ownership of Ivanhoe shares from 42.0% to 46.5%. Under Rio Tinto's agreement with Ivanhoe in December 2010, Rio Tinto agreed to exercise its remaining warrants for the ongoing development of the Oyu Tolgoi project by no later than January 2012.

The remaining warrants entitle Rio Tinto to acquire 55,122,253 shares at an average subscription price of approximately USD 9.10 per share, for total consideration of approximately USD 502 million. Rio Tinto's increased ownership will permit it to nominate an additional director to Ivanhoe's board which will increase Rio Tinto-nominated directors from six to seven out of a total of 14.

Mr Andrew Harding chief executive Rio Tinto Copper said "Exercising the warrants provides further funds for developing Oyu Tolgoi. Construction is well underway and Oyu Tolgoi plans to spend USD 2.3 billion in 2011 on the project's development. The workforce is expected to peak at 14,000 this year.”

He said that "Rio Tinto took over management of the project in December. Our industry-leading operating and technical capabilities will enable the development of this world-class project to the highest of standards, for the benefit of our shareholders and the people of Mongolia."

Rio Tinto can increase its ownership in Ivanhoe to 49% on or before 18 January 2012 including by the exercise of its subscription right to acquire shares from Ivanhoe, and the right to acquire additional Ivanhoe securities from Ivanhoe and Robert Friedland in certain circumstances. If Rio Tinto were to fully exercise its subscription right, it would own approximately 48.5% of Ivanhoe's outstanding shares.

Depending upon its assessment of Ivanhoe's business, prospects and financial condition, the market for Ivanhoe's securities, general economic and tax conditions, and other factors, Rio Tinto will consider availing itself of its rights to acquire additional securities of Ivanhoe.

voda 22 juni 2011 20:45

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Rio may add 25 million tonnes of coal through Riversdale deal

Bloomberg reported that Rio Tinto Group, the second largest mining company may add 25 million tonnes of Mozambique coal to its annual output after buying Riversdale Mining Ltd.

Mr Steve Mallyon Riversdale Managing Director said “When you add it up, Rio will be potentially producing by 2016-17, 25 million tons of product, both coking and thermal coal. That’s if all goes according to plan.”

He said that Riversdale Benga project due to begin output in November or December will ship about 5 million tons of unprocessed coal and may expand to 20 million tons. The adjacent Zambeze project possibly costing USD 4 billion may produce 42 million tons a year, rising to as much as 90 million tonnes of unprocessed coal making it one of the world’s largest coal mines.

IHS McCloskey data on Bloomberg show that producers such as Vale SA are digging mines in Mozambique and Anglo American Plc is seeking coal projects there as prices for the fuel climb. The cost of steam coal sold through South Africa Richards Bay terminal rose about 30% in the past year to USD 118.83 a ton.

Mr Mallyon said A scoping study, completed on a Richards Bay type coal terminal in Mozambique earlier this month looks pretty good. Richards Bay is Africa largest coal terminal with an annual capacity of 91 million tons.

He said that Rio may review the level of 10% to 12% that Riversdale planned to keep in its proposed USD 1.3 billion Benga power plant. Rio as a bigger company, I think, sees the strategic value of the project. Riversdale has previously had interest in the project from Chinese banks as well as companies in the UK US and South Korea.

Mr Mallyon said Eskom Holdings Ltd the largest provider of electricity in South Africa may buy power from the plant. He said that Riversdale expects this year to complete the sale of its Zululand Anthracite Colliery too small for Rio and a specialized product it doesn’t know well after interest from South Africa, Australia, Canada and the UK. It may produce almost 900,000 tons this year.

(Sourced from Bloomberg)

voda 24 juni 2011 17:21

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Rio Tinto cuts Q3 iron ore prices a bit as spot drops

Reuters reported that world's No 2 iron ore miner Rio Tinto Ltd will drop its prices by up to 3% for Chinese steel mills for the third quarter.

Rio has asked some Chinese steel mills to pay USD 2.7234 per dry metric tonne unit for iron ore fines and USD 3.0109 per dmtu for lump ore for the July to September period.

Those compare with Rio's second quarter price of USD 2.7638 for fines and USD 3.1063 for lumps.

The price puts Rio's 62% Pilbara Blend fines at USD 168.85 per tonne, compared with USD 171.35 in the second quarter.

The modest price cut is in line with a decline in spot prices.

Global miners have been using spot values as the basis for setting contract rates since the industry moved to a more flexible quarterly system after scrapping a decades old annual pricing scheme.

(Sourced from Reuters)

voda 27 juni 2011 16:53

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BHP ups its cost estimate for Worsley to USD 3 billion

Reuters reported that BHP Billiton estimated cost of expanding the Worsley alumina project in Western Australia had increased by more than half due to its complexity and inflationary pressures.

BHP which has an 86% interest in the project, said that its share of the estimated cost had increased to USD 2.995 billion from the USD 1.9 billion figure given in May 2008.

Mr Andrew Mackenzie CEO of BHP's nonferrous unit called the project one of the most complex Brownfield projects undertaken. Such complexity has resulted in significantly lower levels of construction progress than previously anticipated while broader inflationary pressures and the strengthening of the Australian dollar have also contributed to the cost increase."

The revised cost estimate for the project includes the development of the Marradong mine, refinery expansion and connection to a multi fuel co generation unit. First production is now scheduled for the Q1 of 2012. The new total estimated cost of the refinery expansion is USD 2.86 billion. Other partners in the venture are Japan Alumina Associates Private Limited with a 10% stake and Sojitz Alumina Private Limited with 4% interest.

The expansion project will lift capacity of the Worsley refinery from 3.5 million tonnes per annum of alumina to 4.6 million tonnes per annum at full capacity through expanded mining operations additional refinery capacity and upgraded port facilities.

(Sourced from Reuters)

voda 30 augustus 2011 16:17

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Lovesick miners raise costs for Rio Tinto and BHPB

Bloomberg reported that ten minutes' walk from Australia's largest open pit gold mine, 35 year old driller Mr Matt Brown swigs a beer in the bar of the Rock Inn Hotel and laments one of the biggest problems of the mining boom, a shortage of girlfriends. Mr Brown, who explores for gold and iron ore with Westralian Diamond Drillers Pty, said that "You get lonely. Relationships are the hardest thing about mining."

Mr Tim Douglas, a mining engineer with Macmahon Holdings Limited, said that his job is incompatible with a long term relationship. He works eight day stints at Rio Tinto's Argyle Diamond Mine in the East Kimberley region mine with six day breaks in Perth, a three and a half hour flight away. He added that "You've got to pretty much give up your life. A lot of my friends have been eyeing some quick cash in the mines, but it’s not all it's cracked up to be."

The heartache in places like Kalgoorlie and the Queensland coal town of Glenden, where there are 23 unmarried men in their 40s for each single woman, is a headache for companies like Rio Tinto Group that are trying to attract workers. The biggest commodities boom since the 1850s Gold Rush has sapped the supply of Australians willing to adopt Mr Brown's lifestyle, even with wages that are double the national average.

To persuade workers to join, companies offer extras such as seven hour, round trip flights to cities every few weeks, satellite phones to keep miners connected with loved ones, counseling services, and even flying in families for employees who keep mines going over the Christmas holiday.

Mr Gervase Greene, a Perth based spokesman for Rio Tinto's iron ore operations, said that "It's a wonderful life for many people, but for many people there's a crippling isolation. You've got to think outside the square to access workers and keep them in the workforce. There's still a labor shortage."

According to data released by the Australian Bureau of Statistics, miners' wages have risen 33% in the past five years in Australia to AUD 2,113 a week or more than double the national average. That’s almost twice as much as miners in the US, who are paid an average of USD 1,236 a week.

(Sourced from www.bloomberg.net)

voda 31 augustus 2011 21:50

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BHPB CEO Mr Kloppers sees more iron ore buyouts

Herald Sun reported that BHP Billiton CEO Mr Marius Kloppers is predicting new acquisitions in the iron ore space as majors swoop on projects unable to attract development funds.

He said “Being a "promoter" and having a project to fund was a tough space to be in. If I look at some of the iron ore promotion that has been going on in Brazil and Australia, most of those projects are simply not fundable. Funding opportunities have gone away and, as a result, ownership will change over time.”

BHP failed in its attempt to merge its West Australian iron operations with Rio Tinto, but there has been consolidation at the smaller end of the sector. Atlas Iron has been the leading success story at the junior end of the booming sector and has rapidly grown its size through smaller acquisitions.

Mr David Flanagan MD of Atlas Iron said the funding difficulties were real for emerging companies and he expected to see many hopefuls get into joint ventures or sell assets. He said “People have different levels of access to funding than in the past and those companies that aren't going to be able to come up with the funding are now going to be more inclined to consider change of control. Mining and carbon taxes, coupled with the volatile global markets, were affecting companies' ability to attract funds. We have been trying to get funding for our magnetite projects and it is getting harder and harder. We have good control of our assets and balance sheet so one of the options we will always hold is the concept of doing a joint venture on one of our projects.”

(Sourced from Herald Sun)

voda 31 augustus 2011 22:06

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BHPB updates on FY 2011 manganese production

Record annual ore production and sales reflected a full year contribution from the GEMCO Expansion Phase 1 project in Australia. Record annual sales were also achieved for manganese alloy as the business intensified its volume maximizing strategy.

Underlying EBIT remained largely unchanged at USD 697 million as stronger volumes and prices were offset by higher costs. Notably, controllable costs remained largely unchanged during the period, although the combined impact of a weaker US dollar and inflation reduced Underlying EBIT by USD 186 million. Average realized ore and alloy prices increased by 9 per cent and 7 per cent respectively during the 2011 financial year.

After the successful commissioning of the GEEP1 project, the partners have approved the next phase of expansion that will confirm GEMCO's status as the world’s largest and lowest cost producer of manganese ore.

The USD 167 million (BHP Billiton share) GEEP2 project will increase GEMCO's beneficiated product capacity from 4.2 million tonnes per annum to 4.8 million tonnes per annum (100 per cent basis). In addition, road and port capacity will increase to 5.9 million tonnes per annum, creating 1.1 million tonnes per annum of latent capacity for future expansion.

voda 7 september 2011 21:16

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BHPB approves 11 major projects in 2011

BHP Billiton approved 11 major projects for a total investment commitment of USD 12.9 billion during the 2011 financial year. Following the progression of the Jansen Potash Project into feasibility during the March 2011 quarter, BHP Billiton also announced an additional USD 488 million of pre-commitment funding to support development of the project in Saskatchewan, Canada.

The progression of these projects forms a meaningful component of the Group’s anticipated organic growth program that is expected to exceed USD 80 billion over the five years to the end of the 2015 financial year.

Industry wide cost pressures remain a feature of the development landscape and reflect stronger producer currencies as well as underlying inflation on raw material and labour costs. BHP Billiton approved revised capital budgets and schedules during the 2011 financial year for the Esso Australia Resources Pty Ltd operated Kipper (USD 900 million, BHP Billiton share) and Turrum (USD 1.4 billion, BHP Billiton share) Petroleum projects and the BHP Billiton operated Worsley Efficiency and Growth (USD 3.0 billion, BHP Billiton share) alumina refinery expansion (all Australia).

Three major projects delivered first production in the twelve month period: namely the New South Wales Energy Coal MAC20 Project, the Douglas Middelburg Optimisation Project in South Africa Coal and Angostura Gas Phase II (Trinidad and Tobago).

voda 13 september 2011 16:55

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BHP negotiation with union s at Australia coal mines hit impasse

Reuters reported that global miner BHP Billiton negotiations with unionised workers at its Queensland coal mines had reached an impasse and the company will now move to have employees vote on an agreement at the end of this month.

Ms Fiona Martin BHP spokeswoman said "We believe we have reached an impasse in negotiations based on feedback from the single bargaining unit that they were not prepared to compromise further on matters yet to be agreed."

She said "We are keen for employees to take the time in the coming weeks to review and understand the agreement in detail, before the end of September ballot."

Union officials were not immediately available to comment.

The Construction Forestry Mining and Energy Union is pushing for greater job security and more pay for its members as rising commodity prices boost mining sector profits.

(Sourced from Reuters)

voda 14 september 2011 16:44

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Copper demand to explode over next 10 years - Rio Tinto

According to global mining giant Rio Tinto, the global demand for refined copper is going to soar over the next decade. The demand for copper by 2020 will rise by close to 40% to 27 million tonnes as per the country director of Rio Tinto in Mongolia Mr Cameron McRae.

He is also the chief executive of the Oyu Tolgoi project in Mongolia, a huge gold and copper mine under development. The company owns 48.5% stake in Canadian company Ivanhoe Mines which owns 66% of the gold and copper project at Oyu Tolgoi.

The remaining 34% of the project is owned by the Mongolian government. Local politicians have been pressuring the government to increase a stake in the mine which is said to have an approximate life span of 100 years. Once it begins production it will be amongst the 10 largest producers of copper and gold in the world.

The construction of the mine accounts for close to 30% of the nation's gross domestic product of Mongolia. The Oyu Tolgoi project is forecast to start commercial production in the H1 of 2013 and is expected to be able to produce 450,000t of copper and 330,000 troy ounces of gold annually.

Mr Cameron McRae said that there was significant scope for demand growth over the medium to long term for copper as China and India continue to grow. He added that China is forecast to build between 4 million and 5 million new buildings between 2005 and 2025 as it continues to undergo fast paced urbanization.

(Sourced from www.azomining.com)

voda 14 september 2011 16:47

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Rio Tinto India MD unveils plans for iron ore projects in Orissa

It is reported that Rio Tinto has finally revealed volumes and spending intentions for its long held Orissa iron ore joint venture in India as it focuses on supplying domestic markets.

Mr Nic Senapati Rio MD of India said the company and its partners planned to invest up to USD 2 billion over the next few years.

He said that we are looking at a scale of between 5 million and 25 million tonnes per annum in the long term."

He also told Indian media that Rio is looking at exporting thermal coal directly to India. He said Rio planned to ship the coal in Capesize vessels to India to make the price of Australian coal competitive with that of the closer markets of Indonesia.

Dr Senapati comments came during a Rio sponsored media tour that brought Indian journalists to the company big Pilbara iron ore operations earlier this month.

Rio which has been in the Orissa province since the mid 1990s owns 51% of the project. The state owned Orissa Mining Corp owns 44% and NMDC owns 5%. According to the newspaper report, Rio has renegotiated an agreement with OMC to develop and mine three iron ore deposits in the Keonjhar district of Orisha which until recently was called Orissa. The deal is expected to be finalised soon. Under the new agreement, the mines would supply domestic Indian demand, reversing previous intentions to export from Orissa.

(Sourced from www.theaustralian.com.au)

voda 15 september 2011 16:50

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Rio Tinto to invest more in Pilbara iron ore expansion

Rio Tinto is to invest USD 833 million (Rio Tinto share USD 706 million) in major power and fuel supply projects as part of its drive to substantially increase iron ore production capacity in Western Australia.

Rio Tinto's integrated Pilbara power and gas network will be upgraded with a USD 520 million investment and a further USD 313 million will be allocated to fuel infrastructure facilities.

The projects are needed to support annual production capacity of 283 million tonnes per annum, a milestone Rio Tinto has targeted for 2013. The fuel infrastructure project will also help support the next phase of potential expansion, to 333 million tonne per annum in 2015.

Mr Sam Walsh CEO Iron Ore and Australia said "This investment marks yet another significant step towards the expansion of iron ore production by 50 per cent in the five years to 2015, a timeline we recently brought forward by six months. These projects provide certainty in meeting our power and fuel supply requirements, both now and into the future."

Power infrastructure
A USD 520 million (Rio Tinto share USD 417 million) upgrade of the integrated power and gas network will deliver an additional 120 MW to sustain the current 230 million tonne per annum capacity and support expansion to 283 million tonne per annum. Two 40 MW open cycle gas turbines will be installed as part of a new power station near the West Angelas mine site and a 40MW open-cycle gas turbine will be built at the existing Yurralyi Maya Power Station near Dampier. The investment also provides for associated power infrastructure such as substations, gas pipelines and transformers.

Fuel facilities
The USD 313 million investment (Rio Tinto share USD 289 million) in fuel infrastructure will support the expansion programme to 283 million tonne per annum, and provide some of the capacity needed for expansion to 333 million tonne per annum. On completion, the fuel network will have a total storage capacity of 100ML, with 56ML additional capacity at Parker Point port terminal at Dampier. Two new inland distribution hubs will also be created, removing the requirement for two trains to transport fuel from Port Hedland, some 400 kilometres to the north.

Rio Tinto's schedule for expanding its integrated Pilbara operations is as follows
225 million tonne per annum - current operating capacity
230 million tonne per annum by end of Q1 2012 - Dampier port incremental (in implementation)
283 million tonne per annum by end of H2 2013 - Cape Lambert 53 million tonne per annum increment (in implementation)
333 million tonne per annum by end of H1 2015 - Cape Lambert 50 million tonne per annum increment (in feasibility study)

voda 27 september 2011 20:44

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BHP warns that coking coal strikes could spread

It is reported that strikes by workers at seven coking coal mines run by the BHP Billiton Mitsubishi Alliance joint venture in Queensland may spread as unions look to increase their influence under the Australian federal government Fair Work Act.

The company said as it listed risk factors in its annual report released this week that “There is some evidence that labour unions are increasingly likely to pursue claims in the bargaining process about union access and involvement in operational decision-making relating to the implementation of change.”

It said “Industrial action in pursuit of claims associated with the bargaining process has occurred in a number of businesses and is likely to continue to occur as unions press for new claims as part of the negotiation around new agreements.”

BHP has held out against industrial action at the BMA mines it runs with Japanese trading house Mitsubishi because it does not want greater union power in the bargaining process which it says would adversely affect workplace flexibility, productivity and costs. And it is keen not to set a precedent at BMA that could be followed at BHP other mine sites including its New South Wales coal operations.

BHP's warning will reverberate through Australia coal mining industry, particularly with miners Xstrata and Anglo American that are negotiating new workplace agreements at their Oaky Creek and Callide mines respectively.

(Sourced from argusmedia.com)

voda 27 september 2011 20:51

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Indigenous contractors prove their mettle at BHP Billiton Iron Ore

Indigenous owned and operated contract company, ALM Contracting are proving their mettle within the Pilbara based BHP Billiton Iron Ore operations, applying their flexible business approach to contracts throughout the company.

Mr Chris Cottier BHP Billiton Iron Ore Senior Manager Community and Indigenous Affairs, describes the value of Indigenous contractors such as ALM Contracting to the company. He said that “ALM Contracting is a great example of an Indigenous business whose ability to respond to various needs while complying with the highest mine-site standards has seen them go from strength to strength.”

Mr Cottier said “BHP Billiton Iron Ore has recently reached a significant Indigenous Contracting milestone, awarding USD 115 million in contracts to 15 Indigenous businesses in Western Australia last financial year alone.”

He said that “We have established a number of long term collaborative relationships with Indigenous businesses based in or with significant interests in the Pilbara and are seeing many new contracts in areas such as electrical, construction, horticulture and community development.”

Mr Cottier said the Company had actively pursued a strategy to increase contracts awarded to Indigenous businesses backed by ongoing business support over the term of the contract.

He said that “At BHP Billiton we are committed to reducing disadvantage among Indigenous members of our community. Stimulating growth in Indigenous businesses is a critical piece of the puzzle and just one of the ways we seek to achieve this goal.”

He added that “We are extremely encouraged by the success of our Indigenous Contracting program to date and will continue to expand it in coming years.”

Mr Anthony Martin owner of ALM Contracting describes his experience working with BHP Billiton Iron Ore and the support he has received as his company takes up the challenge of working as a contract company to the mining industry.

Mr Martin said “Working as a Trainer/Assessor within BHP Billiton Iron Ore, I saw a great many opportunities for a business with a flexible work approach and good work ethic to take up some of the non-mining specific contracts such as grounds maintenance and weed-spraying.”

He said that “ALM Contracting is committed to taking on a 100% local Indigenous workforce and, through on-the-job-training, providing real workplace experience and a chance to prove themselves through hard work.

He added that “Since establishing my business I have received support from Veolia Environmental Services; they provide me with an operations area within their local yard and access to their experience and tools which can only be accumulated over years of working within the mining-industry.”

Since the initial grounds maintenance contract at Nelson Point, ALM Contracting has been successful in securing contracts within community development installing fencing to the Hedland Senior High School oval and working with RPS to change the face of Cassia Primary School; environmental contracts, completing the weed spraying of the rail line between Port Hedland and Newman and is in the process of securing their largest contract in the area of infrastructure.

(Sourced from pilbaraecho.com.au)

voda 28 september 2011 20:27

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Rio Tinto will talk to Mongolia on copper mine deal

Reuters reported that global mining giant Rio Tinto will respond to any request from the Mongolian government to discuss its investment in the country's giant Oyu Tolgoi copper and gold deposit but still expects the original 2009 agreement to be honoured.

Mr Cameron McRae Rio Tinto's Mongolia country manager and CEO of Oyu Tolgoi LLC, the entity running the mine, said that he had not yet received any formal notification that the government will seek to modify the investment agreement. We respect the Mongolian government and when they give us the notification to come and talk we will have those talks.

Mr McRae said that "I think what we are demonstrating is that the investment agreement is a contract and we're going to honour our commitments and we expect the government to honour its commitments."

The landmark 2009 investment agreement on Oyu Tolgoi gave 66% of the project to Ivanhoe Mines with the rest remaining in the hands of the Mongolian state. Rio Tinto owns 48.5% of Ivanhoe's shares and is also in charge of constructing the mine. However, a group of 20 parliamentarians have submitted a petition to the government asking it to reopen negotiations to increase Mongolia's stake. Rio Tinto's own forecasts suggest the Oyu Tolgoi project alone could account for about 5% of the country's GDP growth.

Mr McRae said that the project had already brought huge benefits to the Mongolian economy helping to transform the capital Ulan Bator and driving construction and growth across the country. Another benefit of the Oyu Tolgoi agreement was the confidence it gave other foreign firms to invest in the country.

Phase I of the massive mine, started almost from scratch last year in the remote and sparsely populated South Gobi region, will be ready to begin producing copper in the second half of next year. It is expected to produce an average of 450,000 tonnes of copper a year over its 50 to 60 year lifetime.

Nationalist politicians continue to bridle at the idea of selling out their strategic resources and foreign investors in Mongolia remain concerned about the risk of more populist legislation directed at overseas mining firms especially as next year's parliamentary elections loom.

Experts also said that previous bills passed by parliament include an export tax on gold and a windfall tax on mining profits, both of which were heavily criticised by investors and subsequently revoked. While a move to increase the government's stake might appease nationalist sentiment, it was unlikely to improve the potential of the mine itself.

Mr Bernard Guarnera president of mining consultants Behre Dolbear said that "If a government takes more than 50% projects will shut down mining is bringing tremendous growth to Mongolia but that could be killed very quickly."

(Sourced from Reuters)

voda 28 september 2011 20:36

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Workers at BHP Australia coal mines continue work stoppages

Reuters quoted a workers union said miners at BHP Billiton Australian coal mines plan to continue work stoppages this week during the ballot period for an employee vote on a contract.

BHP Billiton Mitsubishi Alliance mines have faced a series of work stoppages since the Construction Forestry Mining and Energy Union approved strike action in June in an effort to get greater job security and more pay for its members as rising commodity prices boost mining sector profits.

The union said miners at BMA Gregory and Crinum mines will hold several work stoppages on Saturday and Sunday.

Workers will vote on BHP proposed employee contract from Thursday September 29 through to October 12 a week longer than previously planned due to the timing of school holidays.

BHP said in an emailed statement that "BMA is unable to understand why the unions continue to send BMA notifications of industrial action during the ballot period as this directly conflicts with their stated aim of trying to maximise the opportunity for employees to lodge their vote."

BHP has said BHP proposed employee contract which workers will vote on next week would include a AUD 15,000 signing bonus paid over the course of a year as well as a 5% annual pay rise for three years and some job security provisions.

Union workers had previously rejected a signing bonus offer of AUD 5,000.

The union has said it will reject BHP's offer, which the union considers to have fewer conditions and entitlements in favour of workers.

About 3,500 workers belong to unions at the BMA mines out of a total workforce of around 10,000 and analysts have estimated that a full week of 12 hour stoppages could cut production by up to 1 million tonnes.

(Sourced from Reuters)

voda 28 september 2011 20:43

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Rio Tinto increases its stake in Ivanhoe Mines to 49pct

Rio Tinto has acquired an additional 3,700,000 common shares in Ivanhoe Mines Ltd. through a wholly owned subsidiary, Rio Tinto International Holdings Limited increasing Rio Tinto ownership in Ivanhoe Mines by 0.5% to a total of 361,858,442 common shares or 49% through a privately negotiated share purchase agreement. The shares were purchased for an aggregate of CAD 73,075,000 at a price per share of CAD 19.75.

The share purchase was made on behalf of Rio Tinto by Credit Suisse under an irrevocable mandate given by Rio Tinto to Credit Suisse on August 24 2011. The mandate gave Credit Suisse the irrevocable authority to purchase 0.5% of the outstanding common shares of Ivanhoe on the secondary market at any time for a period of 30 days without further instruction from Rio Tinto. The purchase was executed on 22 September 2011 and settled on 26 September 2011.

The acquisition of Ivanhoe shares was made in compliance with existing contractual arrangements between Rio Tinto and Ivanhoe Mines that permits share purchases in certain circumstances and subject to certain limits. Under the terms of these agreements and subject to certain exceptions, Rio Tinto current maximum permitted shareholding in Ivanhoe Mines is 49%.

voda 29 september 2011 20:38

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BHP outguns Rio with revised production target

It is reported that BHP Billiton for so long relegated to junior partner in the Pilbara iron ore duopoly with Rio Tinto has finally fired a shot across the bows of its arch rival by declaring an ultimate objective that even pips Rio long term target.

On the first of a four day analysts tour of its Pilbara operations, iron ore boss Mr Ian Ashby revealed that BHP was setting a long term production target of 450 million tonnes of iron ore a year to full exploit the potential of his division assets.

Rio long term disclosed target is production of 433 million tonne per annum compared with existing capacity of about 225 million tonne per annum.

BHP's aspiration target is almost three times the annualised rate of 155 million tonne per annum achieved by its Pilbara unit in the June quarter and based on an iron ore spot price of USD 178 a tonne could gross the mining giant as much as USD 80 billion in annual revenue.

BHP has not put a timeline on when it hopes to reach the 450 million tonne per annum milestone or hinted at the cost but told the 34 analysts and investors yesterday that it expects to hit 350 million tonne per annum by the end of this decade. It has already sanctioned a USD 7.4 billion expansion to 240 million tonne per annum which will take up all available space in Port Hedland inner harbour.

A move to 350 million tonne per annum and beyond will require the development of an outer harbour at Port Hedland which is being investigated by BHP. The outer harbour will feature an eight berth, 4 kilometres long jetty. It will also require the development of Greenfield mine projects in the Pilbara on top of expansions at existing operations.

BHP and Rio have been expanding their Pilbara operations at an average cost of about USD 150 per incremental tonne.

(Sourced from thewest.com.au)

voda 30 september 2011 22:01

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Rio Tinto Rossing in Namibia strike ruled illegal

Reuters reported that the management at Rio Tinto's Rossing uranium mine in Namibia as saying that a labor court had decided in the company's favor and declared an ongoing strike at the operation illegal. All workers who have been on strike since the early shift on Friday were required to return to work immediately.

The union said that it had appealed the ruling and would continue its walkout. The company is pleased to note that the employees demand for NAD 30,000 cannot permissibly form part of any lawful industrial action, and a final relief order was issued to declare the current strike illegal.

The Mineworkers Union of Namibia which represents some 1,200 of Rossing's 1,600 workers has been protesting over differences in bonuses paid to workers and management in a dispute that sparked 3 day strike in July.

Mr Ismael Kasuto MUN's Rossing branch representative said that "The appeal in principle suspends the labor court verdict, meaning that the status quo remains until the urgent application is heard and the new verdict is given."

Rossing had already offered workers an unconditional up front payment of NAD 15,200 and a further NAD 2,100 to NAD 5,150 per worker which is conditional on safety and production performance during the fourth quarter. That offer was snubbed by the workers in favor of a strike.

Workers have been asking for NAD 30,000 each on top of NAD 11,000 they have already received. The company said that it would consider the next steps for resolving the outstanding issues in the dispute once work has returned to normal.

(Sourced from Reuters)

voda 30 september 2011 22:01

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BHP eases analysts fears over Port Hedland expansion plan

It is reported that BHP Billiton has eased concerns about the potential USD 48 billion Port Hedland iron ore harbour expansion as it showed off its Pilbara region iron ore assets to investors this week.

The Port Hedland outer harbour development which BHP has been forced to pursue after two failed attempts to gain access to Rio Tinto Pilbara harbours was ahead of schedule on environmental approvals, BHP iron ore environmental executive Carl Binning told analysts on a tour of the Pilbara.

Analysts reports from the tour have been generally positive about the expansion previously the subject of some scepticism.

BHP has said capacity in the outer harbour could be 240 million tonnes a year which analysts estimate would cost USD 48 billion. That would bring the port capacity to 480 million tonnes.

A first stage of the outer harbour is targeted for approval in the second half of next year. Because of the extra work required, it had been assumed the development cost of the outer harbour and associated mines and railways would be much more than the USD 183 a tonne BHP has budgeted for its expansion to 240 million tonnes.

Mr Glyn Lawcock UBS analyst said the presentations had improved his outlook on the expansion. He said that "We are more comfortable about going ahead with the outer harbour."

He added that "Assuming a USD 200 a tonne capital cost to build with USD 4 billion to USD 5 billion required upfront to establish a 4 kilometres jetty and construction of the channel we estimate the outer harbour to be worth about USD 10.8 billion net to BHP with an internal rate of return of 15%."

UBS attributes no value for the outer harbour in its USD 270 billion valuation for the mining giant.

(Sourced from www.theaustralian.com.au)

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EUR/USD	1,0630	-0,13%
WTI	83,69	+1,96%

AALBERTS NV	0,00%
ABN AMRO BANK...	0,00%
Accsys	0,00%
ACOMO	0,00%
ADYEN NV	0,00%

AALBERTS NV	0,00%
ABN AMRO BANK...	0,00%
Accsys	0,00%
ACOMO	0,00%
ADYEN NV	0,00%

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Mijnen,Rio...bhp

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