anything to help haw cause

Even if Haw found a bonanza of iron ore, they will not be able to go into production in year 2011, but it will do no harm if iron ore price is high to get investors focus on companies that has potential in iron ore, and not to forget HAW has interest in Gold too.

GLOBAL spot prices for iron ore are set to reach an all-time high in 2011, beating the 2008 record, set during the last commodities boom.

Market expectations are that the average annual spot market price this year will rise to $US153 to $US154 a tonne of iron ore fines with 62 per cent iron content, delivered to China, from $US146.70 in 2010, said Steve Randall, managing director of The Steel Index, a London-based reference price supplier.

The expected 2011 average will exceed the average of just below $US150 a tonne in 2008, according to Mr Randall. While spot iron ore prices towered to their highest ever at more than $US200 a tonne in March 2008 during the commodities boom, the 2008 average was brought down by lower prices later that year after the global financial crisis hit.

The key factors for this year are higher steel output and steel prices, Mr Randall said.



Steel production in China will be stronger for the next few months. Steelmakers in the rest of the world are still recovering from the crisis, theyre not yet back to their 2007-8 levels. In the US mills are now putting up their steel prices like crazy.

According to the Brussels-based World Steel Association, global crude steel output rose 5.1 per cent in November to 114 million tonnes, from the year before, but was still below historical levels, indicating further output recovery is on the way. Global steel demand is expected to improve by 5 per cent in 2011.

Iron ore supply hasnt yet responded to higher demand levels, which could put upward pressure on iron ore prices, Mr Randall said.

New iron production capacity will come on stream only at the end of 2011, in both Brazil and Australia, he said.

In addition, Indias continued ban on iron ore exports from Karnataka state, designed to preserve supplies for domestic steelmakers, has also pressured supplies, according to the price provider. Brazil, Australia and India are the worlds three biggest iron ore exporting nations.