Rio Tinto Iron Ore CEO: BHP JV Won't Reduce Competition
September 04 2009 - 12:08AM
Dow Jones News
Rio Tinto Ltd. (RTP) Iron Ore Chief Executive Sam Walsh said
Friday that the company's proposed production joint venture with
BHP Billiton Ltd. (BHP) won't reduce competition in the iron ore
market.
"We have heard concerns that this joint venture will have a
negative impact on the competition," Walsh said in a speech to a
Committee for Economic Development of Australia function.
"My simple response is to say no, it will not reduce
competition."
Rio Tinto and BHP are committed to have the joint venture in
place by the middle of 2010, Walsh said.
Turning to the iron ore market, Walsh said mining companies need
to be cautious about the recent price rally for iron ore, given
that spot prices have eased to around US$80 per ton from more than
US$100 per ton early last month.
The price fall mirrors recent declines in Chinese steel prices,
Walsh said.
Despite his caution on the market, Walsh said that economic
stimulus interventions by many governments have helped the steel
and iron ore markets increase production.
Almost all of the Group of 20 countries agreed to some type of
fiscal stimulus plan totaling some US$690 billion for 2009, he
said.
-By Stephen Bell, contributing to Dow Jones Newswires;
61-8-9244-4243; sgbell@bigpond.com