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MetalBiz--The global steel industry, including Chinese manufacturers, have opposed the consolidation deal between two of the world's largest miners, BHP Billiton and Rio Tinto, on the grounds that it could lead to a monopoly control of major iron ore assets.
On June 5, the two Australia-based companies agreed to set up an iron ore joint venture after Rio Tinto scrapped Chinalco's plan for a $19.5bln investment in the former.
The proposed joint venture would be in command of most of Australian iron ore resources. The deal will see just two suppliers, that is the Australian joint venture and Brazil's Vale, which control 70% of global iron ore trade, industry warned.
The Secretary-General of the China Iron and Steel Association (CISA), Shan Shanghua, was quoted by Caijing magazine as saying that if these large iron ore mines in Australia were concentrated in the hands of one company, then it may lead to a monopoly situation.
"China needs to import almost half of the iron ore it consumes, and the volumes from BHP Billiton and Rio Tinto account for more than half of these imports," he said.
For more information please visit chinametalbiz.com
On June 5, the two Australia-based companies agreed to set up an iron ore joint venture after Rio Tinto scrapped Chinalco's plan for a $19.5bln investment in the former.
The proposed joint venture would be in command of most of Australian iron ore resources. The deal will see just two suppliers, that is the Australian joint venture and Brazil's Vale, which control 70% of global iron ore trade, industry warned.
The Secretary-General of the China Iron and Steel Association (CISA), Shan Shanghua, was quoted by Caijing magazine as saying that if these large iron ore mines in Australia were concentrated in the hands of one company, then it may lead to a monopoly situation.
"China needs to import almost half of the iron ore it consumes, and the volumes from BHP Billiton and Rio Tinto account for more than half of these imports," he said.
For more information please visit chinametalbiz.com
