Latest news with #iron ore
Forbes
a day ago
- Business
- Forbes
China's $2.4 Billion Gift To Aussie Miners Andrew and Nicola Forrest
China's controversial $167 billion mega-dam project in the Himalayas might be upsetting neighboring countries, but it has boosted the fortune of iron ore billionaires Andrew and Nicola Forrest by $2.4 billion in just four weeks. The separated pair of Australian iron ore miners are joint owners of a 36.7% stake in Fortescue, one of the world's biggest producers of the steel making material. Major shareholders of the Australian iron ore miner Fortescue, Andrew and Nicola Forrest. (Photo by ... More) Since news of decision to build the world's biggest hydroelectric dam on the Yarlung Tsangpo river in Tibet started to leak last month the price of reinforcing (rebar) steel, used extensively in dam construction, has been rising, taking the iron ore price with it. The knock-on effect of a $10 per ton increase in the most commonly traded form of iron ore to $100/t has been a 23% increase in Fortescue's share price on the Australian stock market over the past month to $11.57 (A$17.81) with 8% of that rise coming in the last week. The higher iron ore price has lifted the value of the Forrest's jointly owned 1.13 billion Fortescue shares to $13 billion, up $2.4 billion since late June. Other iron ore miners have shared in the revival of the iron ore price which had been falling from early last year when it was trading at $143/t, dropping to a recent low of $93/t before the rebound to $100/t. Start Of Economic Stimulus The decision to proceed with construction of Yarlung Tsangpo project is seen as a sign that the Chinese Government is starting a new phase of economic stimulus through grand project building, as it has frequently in the past, to stimulate economic growth. Investor interest in the project, which consists of five cascade dams around the city of Nyingchi in eastern Tibet, has triggered widespread buying of commodities and mining stocks. Glynn Lawcock, head of resources at the Australian investment bank Barrenjoey, told the Australian Financial Review newspaper that 'commencement of the hydropower project was seized by Chinese markets as proof of economic stimulus." Daniel Hynes from ANZ Bank said the project 'promises to deliver a positive economic boost for construction materials such as concrete and steel.' Aerial view of the Three Gorges Dam on the Yangtze River, a precursor to the Yarlung Tsangpo project ... More in Tibe. (Photo by VCG/VCG via Getty Images) When finished, the hydroelectric project could supply up to 70 gigawatts of power, three times more than China's biggest hydro project, the Three Gorges Dam, and more than the entire electricity capacity of countries such as Poland. But the damming of rivers can be a problem for downstream communities which rely on river flows for fresh water. India and Bangladesh are concerned about a future lack of water which could affect the livelihood of millions of people. The Yarlung Tsangpo project is also splitting the opinion of environmentalists who see the 'green' hydroelectricity to be produced as a welcome way of displacing fossil fuels such as coal and oil but are concerned about damage to damaging biodiverse region which is also known to be seismically active.
CNA
2 days ago
- Business
- CNA
Australia's Champion Iron secures $179.1 million from Nippon Steel, Sojitz for Canada project
Australia's Champion Iron Ltd said on Tuesday Japan's Nippon Steel and Sojitz Corp will invest an initial C$245 million ($179.11 million) in its Kami iron ore project in Canada for an aggregate 49 per cent interest. The investment follows an agreement that the three companies entered into in December 2024 for the project, which Champion Iron acquired in 2021. Following the initial closing, Champion will hold a 51 per cent interest in the project, while Nippon Steel and Sojitz will have 30 per cent and 19 per cent stakes, respectively. Nippon Steel, Japan's largest steelmaker, recently closed its $14.9 billion acquisition of U.S. Steel after an 18-month-long pursuit. Champion expects the initial closing of the deal to occur in the second half of 2025. Shares of Champion Iron rose as much as 4.6 per cent to A$5.04 in early trade. ($1 = 1.3679 Canadian dollars)
South China Morning Post
3 days ago
- Business
- South China Morning Post
New railway lines put Guinea and Algeria on track to send iron ore to China
China is poised to begin receiving iron ore shipments from Guinea and Algeria this year, as Chinese firms complete the railway lines and ports needed to overcome logistical bottlenecks. For years, the lack of railway infrastructure connecting mine sites to port facilities had stymied iron ore exports from both nations. These massive projects are strategically important to China as it tries to diversify its supply of iron ore away from Australia and Brazil, which together account for about 80 per cent of seaborne exports. Simandou , in the remote southeast of Guinea, is one example. It is said to have the world's largest undeveloped iron ore deposit, and to get that moving a new railway line stretching up to 650km (400 miles) to the Atlantic coast was needed. Likewise, in Algeria, there is another significant iron ore deposit at the Gara Djebilet mine deep in the southwestern Sahara Desert, near the Mauritanian border. That is about 1,650km away from Mediterranean ports – a distance that will be bridged by a combination of new and upgraded railway lines. In the remote southeast of Guinea, Simandou is said to have the world's largest undeveloped iron ore deposit. Photo: Rio Tinto In Guinea, Simandou is now on track to start shipping iron ore from November, according to Rio Tinto, the Anglo-Australian mining giant jointly developing the project with Chinese companies.
Reuters
6 days ago
- Business
- Reuters
BHP fourth-quarter iron ore output beats estimates on Pilbara strength
July 18 (Reuters) - BHP Group ( opens new tab on Friday reported better-than-expected iron ore output for the fourth quarter and hit the upper end of guidance for both iron ore and copper output in fiscal 2025, helped by supply-chain strength at its central Pilbara hub. The company had undergone a debottlenecking exercise at its Pilbara operations after the ramp-up of the South Flank mine last year. That helped boost its output in the June quarter, offsetting a weak March quarter that was impacted by two tropical cyclones. In fiscal 2025, BHP produced 290 million metric tonnes (Mt) of iron ore, at the upper end of its full-year forecast of 282 Mt to 294 Mt. It expects to produce between 284 Mt and 296 Mt in fiscal 2026. The world's largest listed miner said iron ore production from those operations on a 100% basis was 77.5 Mt in the three months ended June 30, up from 76.8 Mt a year earlier. That beat a Visible Alpha consensus estimate of 75.90 Mt. BHP's total copper production was 2.02 Mt for fiscal 2025, at the upper end of its guidance range and in line with a Visible Alpha consensus estimate of 2.0 Mt.
