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    http://www.hellenicshippingnews.com/News.aspx?ElementId=bb6822c7-a8c3-4e62-8cf5-436e4964b834

    In the longer term, Africa holds the key to global iron ore price trends, CRU Strategies CEO Phil Newman told the 20th Annual Investing in African Mining Indaba in Cape Town.

    He said the Simandou iron ore project in West Africa, whose major backers were Rio Tinto and Chinalco, was a large project and its production costs could make a $10/tonne difference to the price if or when it came on stream.

    Simandou has been controversial partly as a result of the big capital cost for both the mine and associated necessary infrastructure.

    Mr Newman said technology and political interference would make a big difference to the supply of minerals.

    Both Brazil and India had lost market share in iron ore largely as a result of government interventions and Australia had filled t his gap. But China had used technology and political intervention to exploit low quality domestic iron ore resources that Western countries would reject.

    Magnus Ericsson, executive director of IntierraRMG (which is now part of SNL Metals and Mining), said the price of iron ore was expected to be between $100 and $120/tonne by 2020 from more than $130/tonne at present.

    H is estimate was more optimistic than some forecasters because he had factored in supply constraints as a result of barriers to expanding production including the squeeze on financing for junior miners.

    Mr Ericsson did not expect the major producers would increase production to a level that would flood the market with iron ore. He also expected China’s own iron ore output to decrease and its imports to increase.

    Steel demand growth was expected to be about 2.7% a year between 2012 and 2021 with particularly strong appetite from Africa and South America, Mr Ericsson said.
    Source: Business Day Live

    Snippets from The Metal Bulletin iron ore index.

    http://www.mbironoreindex.com

    A new African iron ore mid-tier emerges.
    London 03 February 2014 09:27

    A review by mining majors of their iron ore assets and activities in Africa has opened up more opportunities for smaller entrepreneurs to enter the market.

    Escalating greenfield project development costs, a lower raw material pricing environment and investor wariness have seen the world’s largest miners scale down their African iron ore ambitions in the past two years.

    Mining majors BHP Billiton, Vale and Rio Tinto have all pared back early-stage operations in Africa by reducing capital expenditure, clearing a path for smaller enterprising producers to take a foothold in the market.

    In Sierra Leone, London-listed producers African Minerals and London Mining have led the way.

    Entering the market with phased production from low-cost projects, both miners have succeeded in establishing a new regional brand of ore in the market since starting production in 2011.
    Traders have welcomed the flow of iron ore from West Africa into the seaborne market. For example, trading houses such as Glencore, which has offtake agreements with both London Mining and African Minerals, and Vitol, which sells a percentage...
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    China slows pace on African iron ore investments.
    London 03 February 2014 09:23

    China is still a favoured investment partner for iron ore junior miners in Africa, but funding costly infrastructure projects is not high on the agenda for the People’s Republic right now.

    A train loaded with raw materials pushes through the African tropics. The year is 1975, and China has just completed the Tazara railway linking Zambia’s Copperbelt with Tanzania’s coastal city Dar es Salaam – China’s $500 million investment being a symbol of the Asian tiger’s growing interest in the continent’s resources.

    Fast-forward to 2014, and China has shifted much of its overseas mining investment to Africa and become one of the main financiers filling the continent’s vast transport and energy network deficit.

    Many Western juniors continue to look to China, the main raw materials consumer, for funding for the large-scale infrastructure access needed for the often high-quality, but remote, iron ore projects.
    Sierra Leone-focused iron ore producer African Minerals is among the success stories. It has struck several notable deals with Chinese companies in connection with its Tonkolili...
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