Eurofer wants iron ore venture scrapped
Steelmakers want ore-marketing plan blocked
Tom Stundza -- Purchasing, 11/18/2009 2:52:12 PM
European steelmakers have asked the European Union's antitrust regulators to block a joint marketing venture between two of the world's largest iron ore miners, BHP Billiton and Rio Tinto Group, claiming the joint venture could hike prices for iron ore.
As reported, Rio Tinto and BHP Billiton began planning the iron ore joint venture in June in a move that could save them billions of dollars of mining, processing and shipping costs from nearby mines in Western Australia.
Eurofer-the trade group which represents ArcelorMittal, ThyssenKrupp and Corus Group, among others- says the two companies' plans to combine Australian iron ore operations would allow them to share information on output that could affect industry negotiations to set benchmark prices and volumes.
The Associated Press says Eurofer contends that the marketing joint venture "will have the same impact on the iron ore market" as an outright merger between the two miners and allow them to overtake Vale of Brazil as the world's largest iron ore supplier.
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