TTY is busy shipping product at $125 per ton so at 65000 tons...

TTY is busy shipping product at $125 per ton so at 65000 tons per shipment the cash generated is $8.125m If they can do 2 shipments a month they might be able to recoup much of the loss in investments which would make revenue non taxible due to losses. But the story below is interesting.

Vale may seek 20% iron price hike for Asian steelmakers


Thursday, 4 September 2008

BRAZILIAN miner Vale, the world’s biggest iron ore producer, wants to jack up iron ore prices for its Asian customers by 20%, according to media reports.



According to Brazilian news agency Estado and reported by Dow Jones newswires, Vale has sent a letter to Chinese steelmakers seeking a 20% increase in iron ore contracts by year-end.

A similar price hike is expected for Vale’s Japanese customers.

While Vale has neither confirmed nor denied the media reports, if it does negotiate further price hikes, it would be the second price increase for the company’s Asian steelmaker customers this year.

In February Vale negotiated iron ore prices hikes of 65-71% for most of its Asian customers and several European companies.

Fellow mega miners Rio Tinto and BHP Billiton also negotiated significant increases on their iron ore contracts earlier this year.

The Estado report said Vale was using the recently reduced freight rates between Brazil and China to make up the difference between its 2008 price hike and those reached by Rio and BHP.

However the Brazilian miner has refused to confirm what it said were “rumours circulating in the market” in relation to any price adjustment.

Responding to a request from Brazil’s securities regulator, Vale said constant dialogue with clients over commercial contracts was “part of its ongoing business”.

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