george jones - io pricing rebounding

Perth mining financier sees lower iron ore contract prices ahead

One of the leading figures in mid-tier iron ore production in Western Australia, George Jones, believes the big price pushes by the big three – Rio Tinto Ltd, BHP Billiton and Vale – will see a new order over the next 12 months – with contracts being negotiated with the Chinese at lower prices.

Author: Ross Louthean
Posted: Monday , 10 Nov 2008
PERTH -

The announcement by major Pilbara iron ore exporter Rio Tinto that it would be cutting its production by 10% is expected to be a forerunner of tougher negotiations with Chinese and other Asian steel mills taking the lead.

George Jones who was involved with eastern wheatbelt iron ore miner Portman Mining - taken over by American iron and steel company Cliffs Mining - and now is chairman of Gindalbie Metals Ltd. Earlier this month Gindalbie (ASX: GBG) announced it would raise $A162 million ($US112.5 M) through its joint venture partner AnSteel of China to complete project development financing for the Karara iron ore-magnetite project in Western Australia's mid north. This would involve a placement of 190,658,824 shares at A85c/share, a 105% premium to the last October quoted price. The last ASX trade today was at A44¢.

On ABC television news tonight Jones said in a brief interview that the high prices sought and gained in the past two years by the majors were now rebounding.



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