RIO having problems with the massive Simandou iron ore project in Guinea, will be good for the I/O outlook.... see last paragraph..
20th August 2008 BHP iron ore boss Ian Ashby told an investor conference two months ago that the environmental approvals process for its Qantum outer harbour plan remained on track. The Environmental Protection Authority is waiting for BHP to complete scoping and environmental review documents before calling for public submissions.
BHP’s takeover target, Rio Tinto, is expected to join analysts in heavily scrutinising its suitor’s updates today, ready to pounce on any suggestions that the outer harbour plans are running into difficulty.
Rio has based much of its takeover defence on a claim that its iron ore business is far superior to BHP’s. However, with Rio at risk of losing ownership of the massive Simandou iron ore project in Guinea, it will be desperate to reclaim the high ground by picking holes in the progress of BHP’s Pilbara growth plans.
UMC Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
