Perhaps this is one reason why there is has been no post Chinese New Year restocking “yet” despite Chinese stock market hitting record high on stimulus (and more coming) and $US 260 Billion just earmarked for infrastructure project commencing this year.
To secure Northern Simandou, one supposes China can either outbid the rest while destroying the appetite of the others (at least worth a try).
Also very odd for Guinea (with Ebola epidemic till rampant) to want to proceed with auction while BSGR litigation continues. Sounds like China (political pressure) may has a say in this odd timing - being rushed is an understatement.
Guinea could launch Simandou auction in April
Thursday, 19 Mar 2015
Reuters reported that an auction over the rights to develop half of Guinea's giant Simandou iron ore deposit could start as soon as next month.
Mr Kerfalla Yansane mining minister of Guinea said that "I'm flying to Paris to finalise things with the lawyers and the auction could start as soon as next month."
The minister said that he did not doubt that many participants would take part given the very high quality of the deposit, unfazed by the steep fall in iron ore prices in the last two years. This is a long term project.
…”a team of Glencore representatives travelled to Conakry earlier this month and met senior government officials”…..”Other companies to have notified Guinea that they could be interested in taking part in a tender include BHP Billiton and ArcelorMittal”….
….”Other parties interested in the northern Simandou licenses are steelmaker ArcelorMittal, Vale, BHP Billiton and the Chinese government, by far the largest consumer of the steel raw material, sources said”…..
FMG Price at posting:
$1.90 Sentiment: Buy Disclosure: Held
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