From the Financial Times:
China’s first onshore default sent London-listed miners plunging on Friday, with Anglo American leading the fallers.Miners dropped in tandem with metals prices on rumours that the default of Shanghai Chaori, a small solar power company, was prompting banks to call in loans to the private steel industry. Iron ore producers were weakest, with Glencore down 4.4 per cent to 324.9p, Rio Tinto off 3.3 per cent to £32 and Anglo losing 6.6 per cent to £14.63.Analysts also highlighted risks around South Africa’s approval of amendments to its mineral development act. The act gives South Africa’s mines minister the power to restrict exports of minerals by classifying them as “strategic”.
Anglo currently sells thermal coal for just $17 a tonne in South Africa, against $74 to export markets, and iron ore for $62 a tonne against $115 internationally, according to Liberum....MUCH MORE
