Mittal, Glencore Said to Be Among Potential Simandou Bids – by Thomas Biesheuvel and Jesse Riseborough (Bloomberg News – July 31, 2014)
Lakshmi Mittal’s ArcelorMittal (MT) and Glencore Plc are among potential bidders for Guinea’s Simandou project, the world’s largest untapped iron-ore deposit, after it was seized from Israeli billionaire Beny Steinmetz in April, according to people familiar with the matter.
ArcelorMittal, the world’s biggest steelmaker, has declared an interest in the bidding process for two licenses covering the Simandou project in Guinea, according to four people who asked not to be identified as the talks aren’t public. Glencore is also interested, people familiar with its plans said.
Leading mining and steelmaking companies are jostling for a share of the riches contained in Simandou, a remote, iron-bearing mountain range, to take advantage of prices for the raw material that have risen about 50 percent since 2008. Guinea has estimated that Simandou may cost $20 billion to develop, largely because it needs a 650-kilometer (400-mile) rail link.
Spokesmen for ArcelorMittal and Baar, Switzerland-based Glencore declined to comment. The Wall Street Journal reported last month that Glencore was interested in Simandou.
The iron-ore position of Glencore pales in comparison with rivals BHP Billiton Ltd., Rio Tinto Group and Vale SA. (VALE5) Still, Chief Executive Officer Ivan Glasenberg has previously expressed reluctance to invest in expensive new mining operations known as “greenfield” projects. Read the rest of this entry »