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It isn't so much a rumour, it is stated in the press. As the article states it is a matter for the future when it can be determined what synergies can be obtained by merging the two companies. Not sure wether they will as for mind it is hard to see the synergies created when the two companies are on oppisite sides of the globe. However, i think both companies have excellent prospects in their own rights, if they were to merge and get both projects on line they would certainly have a major presence in that sector.http://news.ninemsn.com.au/article.aspx?id=161916=============Ex-Portman boss tips iron ore price riseTuesday Nov 14 17:02 AEDTFormer Portman Ltd chairman George Jones believes a 10 per cent increase in the iron ore price is likely next year with demand for the steel making material still very strong.Mr Jones said ramp-up plans by established producers were taking time and were not keeping up with increasing demand."I think the price rise will be more modest than in previous years, the 71 per cent caught me by surprise but the nearly 20 per cent last year didn't," Mr Jones told a briefing in Perth on Tuesday."CVRD have put up their hand for 40 per cent, that will be ambitious, I think at least 10 per cent is achievable and highly likely."advertisementMr Jones made the call while spruiking his latest venture, Sundance Resources Ltd, where he has recently been appointed non-executive chairman.Sundance's key asset is the Mbalam iron ore project in Cameroon which has an inferred resource in excess of 800 million tonnes, including 218 million tonnes grading more than 60 per cent iron.The project is located about 550 kilometres from the coast in an area with no established infrastructure.Sundance is planning to complete an $18 million pre-feasibility study on the project by mid-2007 and is aiming to bring the operation online by about 2010.The company is intending to raise $20 million through a share placement to finance the feasibility work.A scoping study completed by Australian-based Promet Engineers last year estimated it would cost about $US2.5 billion ($A3.29 billion) to bring onstream.Mr Jones said it was likely the company would bring in a partner down the line to assist with the project's development.Mr Jones also hinted at a possible merger between Sundance and West Australian iron ore hopeful Gindalbie Metals Ltd, where Mr Jones is executive chairman."Whether there are any synergies in the future between the two, that will be for the two boards to determine when they both get further down the track.""Going forward it may make sense to put them together ... there is a lot of work to be done before we concern ourselves with that."Mr Jones was formerly chairman of iron ore miner Portman prior to its takeover by US-based iron ore producer Cleveland Cliffs Inc in 2005.
It isn't so much a rumour, it is stated in the press. As the article states it is a matter for the future when it can be determined what synergies can be obtained by merging the two companies. Not sure wether they will as for mind it is hard to see the synergies created when the two companies are on oppisite sides of the globe. However, i think both companies have excellent prospects in their own rights, if they were to merge and get both projects on line they would certainly have a major presence in that sector.
http://news.ninemsn.com.au/article.aspx?id=161916
=============
Ex-Portman boss tips iron ore price rise
Tuesday Nov 14 17:02 AEDT
Former Portman Ltd chairman George Jones believes a 10 per cent increase in the iron ore price is likely next year with demand for the steel making material still very strong.
Mr Jones said ramp-up plans by established producers were taking time and were not keeping up with increasing demand.
"I think the price rise will be more modest than in previous years, the 71 per cent caught me by surprise but the nearly 20 per cent last year didn't," Mr Jones told a briefing in Perth on Tuesday.
"CVRD have put up their hand for 40 per cent, that will be ambitious, I think at least 10 per cent is achievable and highly likely."
advertisement
Mr Jones made the call while spruiking his latest venture, Sundance Resources Ltd, where he has recently been appointed non-executive chairman.
Sundance's key asset is the Mbalam iron ore project in Cameroon which has an inferred resource in excess of 800 million tonnes, including 218 million tonnes grading more than 60 per cent iron.
The project is located about 550 kilometres from the coast in an area with no established infrastructure.
Sundance is planning to complete an $18 million pre-feasibility study on the project by mid-2007 and is aiming to bring the operation online by about 2010.
The company is intending to raise $20 million through a share placement to finance the feasibility work.
A scoping study completed by Australian-based Promet Engineers last year estimated it would cost about $US2.5 billion ($A3.29 billion) to bring onstream.
Mr Jones said it was likely the company would bring in a partner down the line to assist with the project's development.
Mr Jones also hinted at a possible merger between Sundance and West Australian iron ore hopeful Gindalbie Metals Ltd, where Mr Jones is executive chairman.
"Whether there are any synergies in the future between the two, that will be for the two boards to determine when they both get further down the track."
"Going forward it may make sense to put them together ... there is a lot of work to be done before we concern ourselves with that."
Mr Jones was formerly chairman of iron ore miner Portman prior to its takeover by US-based iron ore producer Cleveland Cliffs Inc in 2005.
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