METALS & MINERALS Chinese steelmakers looking for alternative iron ore suppliers Chinese steelmakers are scrambling to secure alternative iron ore supplies as concerns mount that the alliance forged between Australian mining giants Rio Tinto and BHP Billiton could force up prices. Among the new ore suppliers now being courted are Canada's Adriana Resources and Australia's Sundance Resources. The bid to secure new supply agreements follows an announcement on June 5 that Rio had decided against a USD19.5 billion deal tieup with Aluminum Corp of China, in favor of a new iron ore agreement with BHP. Under the deal, Rio and BHP will jointly manage combined ore output of 270 million tons a year, almost equal to the 340 million ton annual output of No 1 producer, Brazil's Vale. Adriana, which is developing an iron ore port in Brazil and two iron ore projects in Canada, is expected to bring in a Chinese steelmaker as investor in the next few months. Several Chinese companies also expressed interest in investing in Sundance's Mbalam iron ore project in Cameroon, or buying a stake in Sundance.
