With the controversial mineral tax of the Australian government still hanging in the air, the joint venture between BHP Billiton Ltd.(NYSE:BHP) and Rio Tinto (NYSE:RTP) looks like it'll be delayed.
The highly anticipated $116 billion JV between the two mining giants is for the production of iron ore.
Both companies have a lot on their plate since the joint venture agreement, as BHP is attempting to acquire fertilizer giant Potash Corp. (NYSE:POT), and Rio Tinto has invested in some existing projects, including increasing their stake in Ivanhoe Mines (NYSE:IVN), and investing in their current projects with Argyokle Diamond Mine and Pilbara iron-ore mine.
They also signed a deal with Aluminum Corporation of China Limited – Chinalco to operate and develop their Simandou iron ore asset in Guinea.
Although the BHP, Rio deal has somewhat fallen out of the public eye, it has great possibilities for both companies to lowers costs and increase production going forward.
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