bhp takes out umc on the cheap, page-14

http://news.alibaba.com/article/detail/metalworking/100187802-1-fmg-disagrees-export-iron-ore.html

IMO FMG could do with the Railway Deposit Fines for blending, seem like they are looking at blending with the ore from Vale.



FMG disagrees to export iron ore at discount price to China following
Published: 21 Oct 2009 21:35:55 PST

FMG disagrees to export iron ore at discount price to China followingOct. 21 MetalBiz--Australia's iron ore producer, Fortescue Metal Group (FMG) stated on October 19 that the company was negotiating with China whether FMG continues adopting the rebate price in the fourth quarter.

"We are still talking about the fourth quarter price," Graeme Rowley, executive director of FMG told to reporters that it sold out around 10mln tons of iron ore in the third quarter at the discount price, but FMG is not responsible for adopting this price.

FMG agreed in August that to provide iron ore at the price of lower 3% than that to Japan for China's steelmills in exchange for the financing assistance of at most US$6bln from China. But with the negotiation breakage of the financing assistance, it is uncertain that China can obtain the discount price.

All the iron ore produced by FMG are exported to China, but FMG hopes to set foot in Japan and S. Korea markets, which is one ring of long-term expansion plan, increasing the yearly production to 95mln tons from the current around 38mln tons.

Rowley noted that the company is considering mixed its lump ore with fine ore made by Vale and miners, because the mixed ore is easy to sell and can reduce the steelmills' production cost.