iron is hot If TLO indicates their iron ore smelting is feasible then this stock will rock excuse the pun. Companies all over are looking for iron ore see below Teck news release. Should find out soon in coming TLO announcement. Make or break it announcement
Company News Alert
Teck buying shares in Australian iron ore producer: report (RTGAM)
Sonali Paul, James Regan and Euan Rocha
Shares in Fortescue Metal Group rose 5 per cent on Monday on a report that Canadian metals and coal miner Teck Resources may be building a stake in Australia’s third-largest iron ore producer.
Vancouver -based Teck, a large copper, zinc and metallurgical-coal miner, has long expressed an interest in adding iron ore assets to its portfolio, but analysts doubt that the company would make a play for the Australian miner, which is worth more than $17-billion.
Teck is one of the world’s top exporters of metallurgical coal, one of the key ingredients in steelmaking, but it has no iron ore, the other key raw material in steel. The iron ore market is largely controlled by Brazil’s Vale, Rio Tinto and BHP Billiton .
Xstrata has an open desire to mine iron ore, underlined in 2009 by its attempt to buy mining giant AngloAmerican. But a scarcity of major discoveries lately and a near-oligopoly among mining giants Vale, Rio Tinto and BHP Billiton has so far kept iron ore out of its reach.
Iron ore sells for around $142 (U.S.) a tonne to China, the world’s top buyer of the steelmaking commodity due to the mass urbanization underway there, and it only costs about $20-$30 a tonne to mine. Australia alone caters to almost half of China’s iron ore imports, with BHP Billiton, Rio Tinto and Fortescue being the main suppliers.