Fortescue Metals Group Ltd., the best performing company on the Australian Stock Exchange this year, found more iron ore near a mine it is developing in Western Australia state. The shares rose by the most in three years.
The new deposit has ``inferred resources of iron ore totally in excess of 1 billion metric tons,'' the Perth-based company said today in a statement to the Australian Stock Exchange.
Fortescue plans to start shipping ore to Chinese steelmakers from its existing A$2.6 billion ($2.3 billion) project from mid- May 2008....MOREFrom Reuters:
Rivals' tie-up would be good for industry-CVRD
Brazil's mining giant CVRD sees a possible takeover of rival Rio Tinto by world's biggest miner BHP Billiton as a good thing for the industry that will not threaten CVRD's dominance in the iron ore market.
Roger Agnelli, chief executive of CVRD (VALE5.SA: Quote, Profile , Research)(RIO.N: Quote, Profile , Research), also told reporters in Brasilia on Wednesday the company would only follow the negotiations "from afar" and that it was now interested in organic production growth rather than acquisitions after buying Canada's Inco last year....MORE
From Purchasing.com:Iron ore dynamics put ocean freight rates in flux
Logistics buyers are closely watching the state of the iron ore market for signs of an impact on the already record-high bulk ocean freight rates.
The demand for bulk commodities like iron ore and coal play a major role in dictating bulk ocean freight rates. The outcome of negotiations for a benchmark iron contract or the fate of mining giant Rio Tinto could dramatically impact demand and rates for bulk ocean freight in 2008.
The biggest driver of demand of bulk ocean freight is China’s steel industry, which is currently negotiating its benchmark iron ore contracts. Iron ore prices could rise 25% starting April 1, 2008, according to a Reuters poll of 12 analysts, with some looking for a 50% hike in iron ore prices. That level of increase would clearly have Chinese steelmakers looking at other areas—notably spiraling ocean freight rates—to reduce its costs....MORE
