BHP Billiton Ltd. announced its yearly profits climbed 23%, as it outlined plans to create a new company to accommodate assets including nickel mines and aluminum smelters that would be listed on Australia’s stock exchange. Australia’s biggest company, BHP reported a net benefit of US $13.83 billion for the year through June, after delivering more [...]
Glencore Xstrata Plc, one of the world’s biggest mining companies, informed that its saw copper output climb staggering 18 percent in the first quarter as its assets in Congo increased significantly the production. Indeed, increased copper production in Africa certainly helped the company enjoy strong first-quarter performance as it seeks ways to expand.
Surprisingly or not, ArcelorMittal S.A. informed that it recorded a net loss of around $345 million for the first quarter ended March as the giant steelmaker has been facing though market conditions, including low demand for steel. Despite the first-quarter net loss, the world’s largest steelmaker has not revised its projections for the ongoing year as it expects that steel and iron ore sales will substantially surge in the near future on growing demand from the world’s second economy. But the fact is that the company’s restructuring attempts have also brought a ray of hope while the steel markets has finally started stabilizing.
It seems that international companies and African politicians continue to take advantage of rich mineral resources of Africa, nothing has change. Thus findings of a team headed by former UN secretary general Kofi Annan should not be surprising as thee group claims that the Democratic Republic of Congo lost as much as $1.36 billion because of contracts signed in the 2010 – 2012 period. The staggering loss was mainly caused by iniquitous mining contracts signed by the Congo government and offshore companies, not to mention that prices of these mining assets were understated.
At last, mining giants such as Rio Tinto Plc and BHP Billiton Ltd are more than satisfied as they enjoy strong China’s demand for iron ore. The industry leaders note that iron ore imports by the world’s second economy jumped to the highest level in four months as the country has been recently witnessing the slow revival in the steel sector. The new positive trend has encouraged Rio Tinto to continue its expansion plans as it wants to take advantage of the visible upward trend. Yet BHP Billiton Ltd and analysts as well strongly underline that in the future global iron ore supplies would grow at the faster pace than demand, hence the prices might decrease substantially.
BHP Billiton informed that it finally got rid of the Pinto Valley copper mine and a railroad in Arizona. The lucky buyer of these assets is Canada’s Capstone Mining Corp. which is to pay as much as $650 million to the global mining giant. The sale price for these assets is substantially higher than analysts’ estimates ranging from $200 million to $300 million. Interestingly, everything indicates that the BHP Billiton’s divestment operation is speeding up.
The truth is that we need minerals to survive. Therefore, many analysts and researchers are looking for new sources of minerals.And to cut a long story short, all ideas of extraction of minerals from sea and seawater are innovative. But the most important thing is to find ways of the extraction that will not be harmful for the environment as we have only one planet to live on
It was out of the blue when Hargreaves Services informed that would be backed by institutional investors, to the tune of £42 million, to once begin mining in England. The difference, however, will be in the type of mining assets the company will focus on, namely the so-called SURFACE mines. Hargreaves as a logistics company for bulk materials can increase its operational capabilities by moving into surface mining segment.
After suspense grew to high levels, Sundance Resources Ltd. informed that the takeover might not be completed as Sichuan Hanlong group would miss another deadline to demonstrate crucial credit approvals. The $1.4 billion takeover is slowly dying its natural death as the Chinese company once again failed to show that it could finance a deal. Australia’s Sundance Resources might be in deep problems as investors reacted nervously to the news.
On the 7th of March, BHP Billiton Ltd. firmly rejected China’s allegations of iron ore manipulation aimed at driving prices up, underlining that it would improve its transparency in trade with the world’s second economy. China, which is the world’s biggest consumer of iron ore, is convinced that three iron ore miners manipulated the market, thereby pushing prices up.
On the 28th of February, Rio Tinto Plc informed that Chris Lynch, a former BHP Billiton Ltd. executive, was named its new chief financial officer. Chris Lynch will replace the much-respected and committed employee Guy Elliot who informed about his intention to step down back in July 2012.
New Rio Tinto CEO Sam Walsh is gearing up to cut costs as the world’s second largest mining company has just informed that it posted a $3 billion full-year loss. The loss was mainly driven by massive write-downs on the value of aluminum and coal businesses, which led to the resignation of Tom Albanese from a position of chief executive officer on the 17th of January.
Anglo American Platinum Ltd., the world biggest producer of the metal controlled by Anglo American PLC, informed that it saw an operating loss of approximately $715 million in 2012 as its production was affected by violent labor strikes in South Africa. Not only violent labor unrest in South Africa led to the loss as the company had been struggling amid weak demand from its major consumers, including European carmakers hit by the debt crisis. The company noted that demand would probably remain weak in the crisis-hit Europe.
On the 29th of January, Anglo American PLC informed that it would write down $4 billion on its Minas-Rio iron project in Brazil after conducting a review of the scheme. The company, which is one of the world’s mining giants, underlined that the massive write-down in the value of its asset was mainly caused by costs overruns and delays. The surprisingly high write-down on the Anglo American PLC’s project was long expected and it is thought to have been the main cause of the Cynthia Carroll’s resignation from the position of chief executive officer.
On the 17th of January, Rio Tinto Plc, the world’s second largest mining company, informed that its chief executive officer Tom Albanese would resign because of a $14 billion write-down on the value of assets which he supervised. The impairment charge mainly is associated with the $38 billion takeover of Alcan Inc. and the $4 billion coal purchase in Mozambique.
Rio Tinto PLC, the world’s second largest mining company, informed that it would expand iron ore production by approximately 15 percent as it saw its 2012 output grow to about 253 million tons, topping its earlier forecast. The strong results were pushed mainly by the revival in China’s demand for iron ore.
On the 4th of December, it was confirmed that Roman Abramovich agreed to acquire a 7.3 percent stake in OAO GMK Norilsk Nickel to resolve a long and aggressive fight over control between two biggest owners of the Russia’s largest mining company. The dispute, which has been lasting for the last four years, is expected to end. Roman Abramovich, the billionaire owner of Chelsea football club, is said to spend as much as $2 billion on the acquisition of the stake in Norilsk Nickel.
On the 23rd of November, the board of Eurasian Natural Resources Corp. PLC, the multinational natural resources company, informed that it had widened functions of its chairman, Mehmet Dalman. The decision to extend his responsibilities comes as Miner ENRC struggles with boardroom misunderstandings and corporate governance controversies. Due to the extension of Mehmet Dalman’s responsibilities, ENRC CEO will be able to focus on company’s cost and operational efficiencies.
BHP Billiton Ltd., the largest mining company by market value, has started the search for a new chief executive officer who will replace its current CEO Kloppers.The search process is expected to take about two years.