Register
Login:
Share:
Email Facebook Twitter




Stock Market news at lse.co.uk - RSS News Feeds

Bhp Billiton Share News (BLT)



Share News for Bhp Billiton (BLT)


Share Price: 1,052.00Bid: 1,051.50Ask: 1,052.00Change: 0.00 (0.00%)No Movement on Bhp Billiton
Spread: 0.50Spread as %: 0.05%Open: 1,099.00High: 1,109.50Low: 1,048.50Yesterday’s Close: 1,052.00




DEALTALK-Mitsubishi seen tapping Chinese for Australia iron ore project

Mon, 20th Feb 2012 04:53

By Sonali Paul and Narayanan Somasundaram

MELBOURNE/SYDNEY, Feb 20 (
Reuters) - Japan's Mitsubishi Corp plans to head to Beijing soon to line up a partner -- possibly Sinosteel or Baoshan Iron & Steel -- for a $10 billion Australian iron ore and port and rail development, people close to the deal said.

Mitsubishi has bought out its 50 percent partner Murchison Metals to take full control of the Jack Hills iron ore mine and the Oakajee port and rail project for A$325 million ($347 million) in a deal that closed on Monday.

The Japanese trading house has flagged it wants to bring in new partners to help fund the A$5.9 billion cost of building the Oakajee port and railway and the $3.7 billion expansion of the Jack Hills mine in the mid-west region of Western Australia, south of the main Pilbara iron ore region.

'That's the plan. With the stake buy done, Mitsubishi will move to get a partner for the rail and mine, preferably a Chinese investor,' a source familiar with the deal said, adding that a Chinese investor was preferred as it would also be a customer.

Mitsubishi wants to get a deal done in the next 6-12 months so it can move on with the project and could sell a 30 to 50 percent stake.

'At the moment they are open minded on the stake that would be sold,' the source said.

Whoever gets involved will need deep pockets, and there are not too many companies that fit the bill.

'This is a world class project. It's going to be a challenge to finance and you're going to need people with balance sheets to support it,' said a person familiar with Oakajee's evolution.

Sinosteel is seen as the most likely partner, as it is developing iron ore mines in the same area, a new iron ore belt that Asian steel makers want to see developed to challenge Australia's dominant iron ore producers, Rio Tinto and BHP Billiton.

A spokesman for Sinosteel Midwest, Sinosteel's Australian mining operation, declined to comment.

While a resouces joint venture between a Japanese and Chinese company may seem politically difficult given regional rivalries, economic necessity is bringing companies in the two countries together.

For Japanese trading houses, China is a huge market waiting to be supplied with resources and consumer goods, and Chinese companies have the cheap funding sources essential for major mining and energy projects.

If Mitsubishi and Sinosteel teamed up on the Jack Hills and Oakajee projects, they would be following in the footsteps of Mitsui and China's Shenhua Group, who teamed up in 2010 to chase coal developments.

Other potential partners in the port and rail project could be Angang Steel Co, which is a partner in the Karara iron ore mine with Gindalbie Metals in the same region, and Baosteel, people watching the process said.

South Korea's POSCO, which owns a 14 percent stake in Murchison Metals, had been seen as a potential stakeholder in the Western Australian projects. However a spokesman in Seoul said no decision has been made.

Australia's top coal transporter, QR National, is also keeping an eye on the Oakajee project.

'We're interested in seeing (Oakajee) going ahead and we'd be interested if there's an opportunity,' QR National spokesman Mark Hairsine said. ($1 = 0.9364 Australian dollars)



(Additional reporting by Rebekah Kebede in PERTH, Yuko Inoue in TOKYO and Hyun-Joo Jin in SEOUL; Editing by Richard Pullin) Keywords: MITSUBISHI OAKAJEE/

(Sonali.Paul@thomsonreuters.com)(+61 3 9286 1419)(Reuters Messaging: sonali.paul.thomsonreuters.com@reuters.net)

COPYRIGHT
Copyright Thomson Reuters 2012. All rights reserved.
The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.


Related Shares: Bhp Billiton Plc (BLT) 





RPT-COLUMN-Seaborne coal market may shrink, total demand won't: Russell

(Repeats story published earlier with no changes to text)--Clyde Russell is a Reuters columnist. The views expressed are his own.--By Clyde RussellLAU
[Thu 13:00]

BUZZ-Miner relief

** Shares in London-listed mining cos among top FTSE 100 gainers in early trade following Rio Tinto's positive market outlook** Co expects global stee
[Thu 09:22]

COLUMN-Seaborne coal market may shrink, total demand won't: Russell

--Clyde Russell is a Reuters columnist. The views expressed are his own.--By Clyde RussellLAUNCESTON, Australia, Sept 3 (Reuters) - It's tempting to m
[Thu 07:48]

Australia's Port Hedland iron ore exports to China soar 15 pct in Aug

SYDNEY, Sept 3 (Reuters) - Iron ore exports to China from Australia's Port Hedland rose 15 percent to 33.9 million tonnes in August from July, as BHP
[Thu 07:22]

Copper bears retreat, but probably only to marshal forces

* Copper revenues in Chile peso: http://link.reuters.com/xyk55w* Escondida costs fall to $1.07/lb in 2015 from $1.16/lb in 2014* New capacity coming o
[Tue 14:46]

BUZZ-UK Mining cos: Soft Chinese PMIs deliver another blow

** Shares in London-listed mining cos among top FTSE 100 fallers before paring losses after weak Chinese PMI data** Official Purchasing Managers' Inde
[Tue 08:19]

S&P cuts metals price forecasts, to review miners' ratings

MELBOURNE, Aug 31 (Reuters) - Standard & Poor's warned on Monday it was likely to revise the credit ratings for some miners over the next week after c
[Mon 03:45]

Britain's FTSE posts biggest monthly decline since 2012

* FTSE 100 up 0.9 pct* Posts biggest monthly drop since 2012* Energy companies rebound, among top gainers (Updates prices, adds detail)By Kit Rees a
[28 Aug '15]



Sign up for Live Prices
Home  |  Contact Us  |  About Us  |  Careers  |  Advertise with Us  |  Sitemap  |  Terms & Conditions  |  Cookies  |  Privacy


Datafeed and UK data supplied by NBTrader and Digital Look. While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.