as seen in Forbes
Poor markets delay construction of Michigan mine
By JOHN FLESHER
,
02.12.09, 05:25 PM EST
Construction of a proposed nickel and copper mine in
Michigan's Upper Peninsula is being delayed because of poor market
conditions, its parent company said Thursday.
But project manager Jon Cherry said the announcement by London-based Rio Tinto Group
(nyse:
RTP -
news
-
people
)
does not mean the Kennecott Eagle mine is off the table. Planning and
preparations are continuing with the expectation that it eventually
will be built, he said.
Rio Tinto is having other issues, mostly resulting from the same market forces that substantially cut the demand for their metals. From Reuters:
By Raji Menon
LONDON, Feb 16 (Reuters) - Major investors in Rio Tinto
(RIO.L: Quote, Profile, Research) (RIO.AX: Quote, Profile, Research) have poured scorn on efforts by the mining
group to provide explanations of plans to raise $19.5 billion
from state-owned Chinalco, shareholder sources said on Monday.
Over the weekend Rio Tinto held meetings with its largest
investors to try to win support for the deal. Investors have
complained that the deal ignores pre-emption rights, which
should give right of first refusal to existing shareholders in
any fund-raising. [ID:nSYD436504]
and Forbes again:
Options Drying Up For Rio Tinto
Angry investors may prefer stake sales or BHP Billiton to the Chinalco deal, but they may not be as lucrative.
Major shareholders of Rio Tinto are up in arms over the mining giant's proposed $19.5 billion deal with the Aluminum Corp. of China. But for all the discontent, Rio's other options to pay down its massive debt -- a rights issue or counterbids by BHP Billiton -- would likely raise much less than what the state-owned Chinese producer is putting up.
If you're following mines and mining, one good ongoing source is the Ore And More Top Ten, a daily 10 article clipping feed from Benjamin Cox, Chief Executive Officer of Roche Bay, an iron ore mining company which owns mining leases in Nunavut, Canada.