BlackRock Inc.’s Evy Hambro, who manages the $10 billion World Mining Fund, says he will seek talks with Rio Tinto Group management on a planned iron-ore expansion that some analysts say will result in lower prices.
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., the world’s biggest mining company, said the high Australian dollar and weak prices are hurting its local alumina and nickel operations, spurring speculation of possible writedowns or asset sales.
Rio Tinto Group, the world’s second- largest mining company, swung to its first full-year loss in at least 21 years after taking a $14 billion one-time charge on the value of its aluminum and coal businesses.
Fortescue Metals Group Ltd. , Australia’s third-biggest iron ore producer, may need to raise as much as $10 billion in debt by 2017 to fund “aggressive” expansion plans, Royal Bank of Scotland Group Plc said.