afr article

BHP holds talks with ConsMin on iron ore
Author: Yvonne Ball
Date: 13/02/2006

BHP Billiton is in talks with diversified miner Consolidated Minerals over the sale of iron ore from ConsMin's Mindy Mindy deposit in the Pilbara.
The mining giant's bid to lock in future supplies of iron ore from Mindy Mindy continues the trend of major producers swooping on valuable, undeveloped iron ore deposits in Western Australia's remote north as competition heats up for one of the most sought-after commodities in the world.

A deal with ConsMin would emulate BHP Billiton's recent agreement with junior miner Cazaly Resources to purchase 5 million tonnes a year of iron ore from the disputed Shovelanna deposit which Cazaly is attempting to wrest from Rio Tinto.

It also follows Rio Tinto's surprise deal with mining heiress Gina Rinehart in July last year that gave it a controlling stake in the Hope Downs deposit, and comes as iron ore aspirant Fortescue Metals Group begins construction this week of a rival $2 billion-plus project in the Chichester Ranges.

It is understood discussions are continuing between BHP Billiton and ConsMin over an offtake agreement from the medium-grade Mindy Mindy deposit, which lies 60 kilometres north-west of the town of Newman, and within 15 kilometres of BHP Billiton's Newman railway.......