Cyclone Heidi forced the suspension of ore loading operations in Western Australia. Figures from the Port Hedland Port Authority showed up a pick-up in shipments in December 2011, although iron ore prices are forecast to fall in 2012 on softer demand from China. In company news, proposed takeover action with Extract Resources Limited
(ASX:EXT) and African Iron Limited
(ASX:AKI). BHP Billiton Limited
(ASX:BHP) and Rio Tinto Limited
(ASX:RIO) award contracts in WA and IronClad Mining Limited
(ASX:IFE) advances its iron ore project. FNN speaks exclusively with American investor and author, Jim Rogers about why he believes agriculture is the best investment.
Resources news Cyclone Heidistrikes WAExports from Western Australia’s Pilbara region were suspended as Cyclone Heidi made its way over the coast. BHP Billiton Limited
(ASX:BHP), Rio Tinto Limited
(ASX:RIO) and Fortescue Metals Group Limited
(ASX:FMG)were among the miners who were forced to stop loading ships. Santos
(ASX:STO) also shut its oil production from its Mutineer-Exeter oil field, and Woodside
(ASX:WPL) shut production from several oil fields.The cyclone season typically threatens the Pilbara coast from mid December to April and peaks in February.
Port Hedland iron ore shipments riseMiners such as BHP Billiton Limited
(ASX:BHP), Fortescue Metals Group Limited
(ASX:FMG) and Atlas Iron Limited
(ASX:AGO) could be set for higher production results after a report revealed Port Hedland posted record iron ore shipments in December. The Port Hedland Port Authority has shown iron ore shipments from the West Australian port rose 23 per cent from the year before and 8.6 per cent from the month before. Port Hedland iron ore shipments came in at 21.4 million tonnes in December, of which 16.6 million went to China.
Iron ore prices forecast to fallIron ore price have been forecast to fall in 2012 from last year’s record highs. The Steel Index expects demand to soften and price volatility to continue, forecasting a drop of $US10-$US15 per tonne on average to a range of $US150-$US160 per tonne this year. China is one of the world’s largest consumers of iron ore and its crude steel output is forecast to dip from 8.5 per cent in 2011 to 5 per cent this year.
M&A Activity Chinese takeover of Extract approvedNamibian regulators have approved the possible takeover of uranium miner Extract Resources Limited
(ASX:EXT) that would be triggered by the successful takeover of Extract’s 43 per cent shareholder, Kalahari Minerals, by China's Guangdong Nuclear Power (CGNPC). Extract is currently developing the Husab uranium project in the African nation of Namibia and has secured approval from Australian regulators for a downstream takeover. Should CGNPC acquire more than 50 per cent of Kalahari it has committed to bidding for Extract. Rio Tinto Limited
(ASX:RIO) holds a 14 per cent stake in Extract and a 12 per cent stake in Kalahari.
African Iron receivesExxaro takeoverAfrican Iron Limited
(ASX:AKI) has received a $388 million takeover bid from South African diversified mining company Exxaro. African Iron has iron ore operations in the Republic of Congo and has now inked an implementation agreement with its suitor. Cape Lambert Resources Limited
(ASX:CFE) is African Iron’s biggest shareholder and has backed Exxaro’s bid. If the takeover goes ahead Cape Lambert will receive $72.2 million for its stake, a 209 per cent return on its original investment.
WA contracts VDM awarded BHP Pilbara contractBHP Billiton Limited
(ASX:BHP) has awarded VDM Group Limited
(ASX:VMG) a $25.2 million contract for its Jimblebar project in Western Australia. The contract is for the design and construction of BHP’s ammonium nitrate storage facility and is due to be completed by the end of 2012. VDM scored $30.6 million in BHP contracts in November last year.
LogiCamms awarded Rio contractRio Tinto Limited
(ASX:RIO) has awarded LogiCamms Limited
(ASX:LCM) two design contracts worth $8.3 million for work on its iron ore port assets in Western Australia. The design work will be undertaken on the initial phase of a broader upgrade project at Rio’s East Intercourse Island and Cape Lambert sites over the next 18 months.
Projects IronClad advances SA iron ore projectIronClad Mining Limited
(ASX:IFE) has raised $6 million for its Wilcherry Hill iron ore mine in South Australia through the placement of 7.5 million shares with Hong Kong-based resources industry investor, New Page Investments. The announcement came hot on the heels of IronClad securing key mining approvals for Wilcherry as it moves to start production in the March quarter. First product is due for export to Chinese customers in the June quarter 2012.
CommoditiesFinance News Network spoke with American investor and author, Jim Rogers about why he believes agriculture is the best investment.
“Agricultural, farming- If you buy the right land and you find the right farmers, you’re going to make staggering amounts of money because agricultural prices will go up, the value of the land will go up, your profits will go up every year. That’s where the most money’s going to be made if you can find the right land and the right farmers,” Mr Rogers said.
Mr Rogers has interests in Australia, working as an outside independent advisor for a new unlisted closed end rural land fund, called the Laguna Bay Pastoral Company, which has identified properties to purchase in the south-eastern part of Australia. Mr Rogers is also looking at Africa for agricultural opportunities and says Myanmar is ‘the most exciting investment nation’.
To watch the full interview with Jim Rogers click
here.
