Rio Tinto Looking to Finalize Simandou Iron Ore Investment Plan; LME Nickel Up

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Rio Tinto has decided to “press ahead with finalising an investment framework for the long-delayed Simandou iron ore project and said it would seek ratification from parliament as soon as possible,” reports Reuters.

“West Africa’s Guinea confiscated half of the giant Simandou project in 2008, accusing Rio of moving too slowly, but the two sides settled differences in 2011 and it is seeking to develop the southern half. The company pushed back its start date by at least three years to 2018 last year, without giving a reason.”

“‘The parties have affirmed their commitment on the Simandou project. They have agreed that the priority is to agree the investment framework on which they are working relentlessly and to ratify it by the parliament as soon as possible,'” Rio Tinto said in a statement.”

“It added that after the project was ratified, it would aim to complete a banking feasibility study by early 2015.”

In metal price news for stainless steel and nickel…

On Thursday, March 6, the day’s biggest mover was the spot price of nickel, which saw a 3.2 percent increase on the LME to $15,300 per metric ton. The nickel 3-month price jumped 3.1 percent on the LME to finish at $15,325 per metric ton. The cash price of primary Indian nickel declined 2.1 percent, after two days of improvement.

* Get the complete prices every day on the MetalMiner IndX℠

Chinese stainless steel prices closed flat for the day. The price of Chinese ferro-chrome continues to hover for the fifth day in a row. For the fifth day in a row, the price of Chinese ferro-moly remained essentially flat.

FREE Download: The Monthly MMI® Report – covering the Stainless/Nickel markets.

The price of Chinese 316 stainless coil saw little movement. The price of Chinese 304 stainless coil remained essentially flat . The price of Chinese 316 stainless steel scrap held steady. The price of Chinese 304 stainless steel scrap saw essentially no change for the fifth day in a row. After a couple of days of improving prices, the price of Chinese primary nickel held steady.

Comment (1)

  1. Steve says:

    Simandou got delayed because the Guinea government needs to pay more than it’s entire yearly GDP to make this project work. And at a time when iron ore prices have had huge drops, and look likely to drop further, there is almost no chance the 2018 date will be kept. This project will end up being Rio’s Pascua lama

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