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Sydney (AFP) Nov 3, 2009 Anglo-Australian miner Rio Tinto said China could be priced differently from other iron ore markets in 2010, as it warned that "unfair" costs would make talks difficult, reports said Tuesday. The mining giant said the iron ore price-setting mechanism was evolving. "Any number of scenarios could relate to an outcome in 2010, with one scenario being a different pricing mechanism in China to the rest of the world," iron ore chief Sam Walsh said, The Sydney Morning Herald reported. Rio Tinto, along with other major iron ore producers, failed this year to get Chinese steel mills to agree to a benchmark price for iron ore. The world's second-largest producer of iron ore, Rio has long been a backer of the decades-old benchmark system, under which the first price agreed between a miner and steelmaker becomes an industry standard for the next 12 months. Rio chief executive Tom Albanese agreed in August that the system had to evolve "or it will break". Walsh said Rio would "need to hear directly from Baosteel and CISA on what is their view in relation to prices," referring to China's largest steel producer and the China Iron and Steel Association. "Certainly if there is any tinge of unfairness in relation to what is being structured, it would make benchmark negotiations very difficult," he said. Elsewhere, Australian media reported that state-owned Chinese firm Chinalco turned down an offer to become a partner in a 116 billion dollar joint venture with mining giants Rio Tinto and BHP Billiton. The Australian newspaper said state-owned Chinalco rejected the invitation days before the joint venture between the Anglo-Australian miners was announced on June 5. "As early as May this year, Chinalco was offered a shareholding of up to 5 percent in the still-controversial iron ore joint venture," the newspaper said, without citing sources. "But Chinalco ultimately turned down the invitation because the restructuring of the original deal meant that the Chinese company would no longer be offered board seats at Rio." The newspaper said China's largest alumina producer was offered a place in the joint venture amid growing opposition to Chinalco's proposed 19.5 billion US dollar investment in Rio. Rio Tinto ultimately cancelled the controversial tie-up with Chinalco in favour of a joint venture with fierce rival BHP Billiton and a 15.2 billion US dollar rights issue. Rio Tinto failed to respond to calls Tuesday to comment on the reports. Share This Article With Planet Earth
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Sinopec, Japan's Mitsui to pump millions in Shanghai plantsBeijing (AFP) Nov 2, 2009 China's Sinopec, Asia's largest oil refiner, said Monday that it would team up with Japan's Mitsui Chemicals to invest a combined 60 billion yen (732 million dollars) to build two plants in Shanghai. The factories will produce phenol and ethylene propylene terpolymer (EPT), which are used to make auto parts such as seal strip for car windows and rubber tubes, an executive with the Chinese fi ... read more |
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