Global iron ore supplies will expand faster than demand over the long term, lowering prices and reducing volatility of the raw material used to make steel, according to BHP Billiton Ltd., the largest mining company.
Rio Tinto Group, the world’s second- biggest miner, will probably pursue a $5 billion expansion of its iron ore output in Australia, Chief Executive Office Sam Walsh said, according to two people present at a meeting with investors and analysts.
BHP Billiton Ltd. , Rio Tinto Group and Xstrata Plc have been called to give evidence to an Australian parliamentary committee investigating the government’s planned 30 percent tax on iron ore and coal profits.
Vale SA, BHP Billiton Ltd. and Rio Tinto Group, the three largest exporters of iron ore, threatened to cut supplies unless steelmakers accept their price demands, the China Iron & Steel Association said.
Rio Tinto Group is “examining the decision but can confirm an independent arbitrator has upheld our claim in respect of Ivanhoe Mines’ shareholder rights plan,” David Luff, a spokesman for Rio, said in an e-mail today.
Rio Tinto Group may be considering a takeover bid for Potash Corp. of Saskatchewan Inc. together with a Chinese partner to rival a proposal by BHP Billiton Ltd., the Globe and Mail reported, citing unidentified people.
Xstrata Plc and Rio Tinto Group submitted bids of about 5 billion pounds ($7.8 billion) for the Colombian assets of Drummond Co., the Mail on Sunday reported , citing unidentified people familiar with the talks.
Australian Treasury Secretary Ken Henry said the government’s proposed resource profits tax would boost the mining industry and the economy as companies like BHP Billiton Ltd. warned it will force projects offshore.