Latest news with #Simandou
Yahoo
5 days ago
- Business
- Yahoo
Exclusive-Rio Tinto weighs sale of titanium business, sources say
By Clara Denina, Ernest Scheyder and Melanie Burton (Reuters) -Rio Tinto is considering a possible sale of its titanium unit due to weak prices and low returns, three sources said, just as incoming CEO Simon Trott will weigh up a restructuring of the world's second-largest miner when he takes over next month. Titanium, used to make paints, cosmetics and food colouring, is also a vital ingredient in jet engine parts, missile casings, rocket components, submarines and naval vessels because of its strength, corrosion resistance and lightweight properties. China, the world's biggest producer and consumer of titanium dioxide, has expanded its production to capture over half the global market over the past decade, according to data from the U.S. Geological Survey. China wields significant pricing power, which has knock-on effects for Western miners, including on margins. Against this backdrop, Rio Tinto has been evaluating whether the titanium business still has a place in its portfolio. How to exit it could be one of Trott's first decisions, the three sources familiar with matter said. Rio Tinto declined to comment. Rio would not be the first to exit titanium. Bowing to investor pressure, DuPont in 2013 said it would spin off its own titanium dioxide business. In the company's portfolio, titanium falls under the Minerals business, headed by Sinead Kaufman. This division also includes borates, used in cleaning products, as well as the Iron Ore Company of Canada, diamonds, and the Jadar lithium project in Serbia. The Minerals division reported an underlying EBITDA of $1.1 billion in 2024, 24% lower than in 2023, the company's financial report shows. Iron and titanium operations in South Africa and Canada accounted for more than half. Trott, who takes over as the company's CEO on August 25, has headed the iron ore division since 2021. There is an acknowledgement at the company that internal costs, such as staffing, are excessive, sources have told Reuters, so cost-cutting is expected. "There's going to be a middle management clean out," said one of the sources, who was not authorised to speak publicly. Part of Trott's pitch and vision for Rio includes a focus on streamlining the structure of the company's core businesses iron ore, copper, lithium and aluminium, the sources said. Australia and possibly Canada's iron ore operations, and the upcoming Simandou project in Guinea are likely to be grouped together, as well as the recently acquired U.S. lithium company Arcadium and its other lithium projects and investments, they added. Rio is scheduled to release its half-year results on July 30. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Zawya
01-07-2025
- Business
- Zawya
Guinea Economic Update: Domestic Resource Mobilization and Management for Inclusive and Sustainable Development
The second edition of the Guinea Economic Update offers an in-depth analysis of the country's evolving macroeconomic position and examines how Guinea can increase domestic resource mobilization and management to achieve its development goals. The report, ' Domestic Resource Mobilization and Management for Inclusive and Sustainable Development, ' presents a dual focus: an evaluation of macroeconomic developments and outlook, and an examination of Guinea's potential to enhance and manage domestic revenues, particularly in light of the expected windfall from the Simandou iron ore project. The first part of the report highlights Guinea's ongoing and anticipated economic growth, with GDP growth reaching 5.7% in 2024, projected at 6.5% in 2025, and averaging 10% in 2026–27, driven by expanding mining activity. However, the report underscores that recent growth has not significantly reduced poverty, which remains high at 52%, due to limited job creation in the non-mining sectors. ' In recent years, Guinea has achieved robust growth, primarily fueled by the mining industry and agriculture. Yet, the key challenge remains in transforming growth into employment opportunities for Guineans,' said Marilyne Youbi, World Bank Group Economist and Lead Author of the report. The report points to a widening fiscal deficit — 4.8% of GDP in 2024 and rising public debt, driven by infrastructure investment and still-limited revenue mobilization. Tax revenues remain low at 13.1% percent of GDP, significantly below regional targets, constraining the government's ability to invest in essential services such as health, education, and infrastructure. The second part of the report presents an analysis of Guinea's domestic resource mobilization and management landscape. It argues that increasing and better managing public revenues, especially from the mining sector, is essential for fiscal sustainability, economic diversification, and improved social outcomes. The report calls for stronger tax policy enforcement consistent with the Tax and Mining Codes, and it highlights key reform areas including enhancing tax audit capabilities, improving the integrity of the taxpayer database, ensuring timely filing and payment of taxes, and deepening digitalization of revenue administration. It also calls for reforms to strengthen management of public expenditures and public investments programs. ' This report underscores the urgency of implementing reforms to make growth more inclusive and resilient,' said Issa Diaw, World Bank Group Country Manager for Guinea. ' With the Simandou iron ore project poised to transform the economy, Guinea has a narrow window to ensure that the benefits of growth are widely shared.' As Guinea enters a potentially transformative phase in its development, the report calls for a renewed policy focus on debt sustainability, macroeconomic stability, as well as investments in human and physical capital. Download the Guinea Economic Update in English. Distributed by APO Group on behalf of The World Bank Group.
Zawya
30-06-2025
- Business
- Zawya
Guinea Chamber of Mines and Critical Minerals Africa Group Sign Landmark Memorandum of Understanding (MOU) to Boost Inward Investment and Accelerate Guinea's Critical Minerals Sector
The Guinea Chamber of Mines and Critical Minerals Africa Group ( have today announced the signing of a ground-breaking Memorandum of Understanding (MOU) aimed at fostering strategic partnership, attracting investment, and unlocking the immense potential of Guinea's critical minerals sector. This alliance marks a significant milestone in Guinea's journey to becoming a key player in Africa's industrialisation and global supply chains for critical minerals. The MOU underscores a shared commitment to developing Guinea's vast deposits of bauxite, gold, and, most notably, its rich reserves of critical minerals such as lithium, cobalt, and rare earth elements. By working together, the two organizations aim to streamline investment processes, promote responsible mining practices, and catalyse infrastructural development to support sustainable growth. Guinea's critical minerals sector is poised for exponential growth, driven by global demand for electric vehicles, renewable energy technologies, and advanced electronics. The country's strategic location, abundant natural resources, and government support position it as a pivotal hub for Africa's industrialization. One of the standout projects fuelling this momentum is the Simandou iron ore and associated mineral deposits. The Simandou Range is renowned for its vast reserves of high-grade iron ore, which is essential for steel production worldwide. Its development is expected to significantly boost Guinea's economy and position the country as a key supplier in global markets. "This partnership with Critical Minerals Africa Group is a testament to Guinea's commitment to becoming an industrial powerhouse. Our abundant natural resources, particularly in critical minerals, are vital to the global transition to clean energy. By fostering strategic investments and responsible mining practices, we are unlocking the transformative potential of Guinea's mineral wealth," Ismaël Diakite, Chairman of the Board of Directors, Guinea Chamber of Mines. 'Guinea is at the forefront of Africa's mining revolution. Guinea's rich deposits of critical minerals, coupled with the country's strategic location and supportive policies, make it an ideal hub for industrial development on the continent. This alliance will accelerate investments, create jobs, and support sustainable growth,' stated Veronica Bolton Smith, CEO of The Critical Minerals Africa Group. As Africa's fastest-growing economy, Guinea offers an attractive landscape for investors seeking to tap into the continent's mineral wealth. The country's government has prioritized infrastructure development, policy reforms, and regional cooperation, making Guinea a magnet for foreign direct investment. Distributed by APO Group on behalf of Critical Minerals Africa Group (CMAG). Media Enquiries: Halla Abdulla Media Manager, The Critical Minerals Africa Group Email: info@ About the Guinea Chamber of Mines: The Guinea Chamber of Mines is the premier industry association representing mining companies and promoting sustainable mining development in Guinea. About The Critical Minerals Africa Group (CMAG): The Critical Minerals Africa Group is an advocacy group that seeks to foster deeper relationships between Africa and global markets and put Africa at the heart of international discussions surrounding critical minerals and associated supply chains. CMAG aims to enable the creation of resilient and diversified critical minerals supply chains that benefit the communities in which they are extracted, as well as to accelerate economic development through the capture of value-adding activities.
West Australian
24-06-2025
- Business
- West Australian
BHP's WA iron ore chief Tim Day rebukes Andrew Forrest's warning the Pilbara could soon be a ‘wasteland'
The boss of BHP's Western Australian iron ore empire is firing back at people like Andrew Forrest painting a 'negative picture' of the Pilbara, just weeks after the Fortescue founder said the State's most resource-rich region is at risk of becoming a 'wasteland'. BHP 'will never talk down the Pilbara', according to Tim Day, who is making the veiled rebuke on Wednesday at the Pilbara Summit held in Karratha. 'Others are painting a very different, negative picture (of the Pilbara), which we do not agree with,' Mr Day will say. 'Globally, BHP is making a significant and strategic push for commodities like potash and copper, but iron ore in the Pilbara is what has kept our business strong and stable for decades. That's not changing. 'Anyone who claims the iron ore industry is in decline needs to look at the numbers — because they're dead wrong.' Mr Day's speech comes about a month after Fortescue founder Andrew Forrest said the Pilbara could turn into a 'wasteland', with the Cottesloe-based billionaire claiming China is increasingly looking to higher-grade iron ore overseas to feed its steel mills. 'They're looking straight into a future that may or may not include Western Australia. China will base its green steel industry on other ores that are specific to Brazil or Africa, but not our lower grades,' Mr Forrest said last month. Mr Day told The West Australian his speech at the Pilbara Summit is not just specifically targeted at Mr Forrest, but more broadly 'getting ahead' of anti-Pilbara sentiment emerging in business circles. Fortescue is developing an iron ore mine in the African country of Gabon, but it is the massive and high-grade Simandou iron ore mining complex on the same continent that is set to be one of the biggest challengers to the Pilbara's global supremacy. Rio Tinto owns about a quarter of the entire Simandou complex and is spending nearly $10 billion to develop its portion, which is set to export its first iron ore next year. But Mr Day suggests the threat of Simandou, which has been colloquially dubbed the 'Pilbara Killer', is overblown. While BHP's key Pilbara iron ore rivals in Rio and FMG are diversifying away from their mining heartland into Africa, the Big Australian is focused on widening its gap over Rio as the most efficient operator in the Pilbara. 'Our absolute intention is to keep pushing our productivity agenda in the Pilbara over the next few years,' Mr Day told The West. One headwind facing BHP's productivity agenda is the emerging unionisation of the Pilbara's iron ore mines over the past year. The union movement was essentially dormant in the region since the 1980s but has now been emboldened by the Albanese Government's stance on industrial relations. Mr Day suggested BHP was tuning out the union chest-beating. 'If you think about what's made the Pilbara successful, it is that direct relationship between employers and workers that has actually made them (the) highest paid workforce globally,' he told The West. 'This has worked extremely well, so our goal is to continue that journey, continue working closely with our workforce and do what we've been doing for many years. 'And we're still doing it now, regardless of what's happening with union involvement. We continue to drive a direct relationship with our workforce.' Mr Day's backing of the Pilbara as the world's premier iron ore mining hub comes as Rio Tinto and Gina Rinehart's Hancock Prospecting on Tuesday committed to spending $2.5b to extend the life of the Hope Downs mining operation in the region.
Business Upturn
16-06-2025
- Business
- Business Upturn
NMDC shares drop over 2% as Citi and Kotak reiterates ‘Sell' ratings
By Aman Shukla Published on June 16, 2025, 09:38 IST NMDC shares slipped over 2% in morning trade after leading brokerages Citi and Kotak Institutional Equities reiterated their 'Sell' calls, highlighting risks of further price correction in the domestic iron ore market. Citi has set a target price of ₹60, while Kotak has pegged it even lower at ₹55. Citi noted that NMDC's current price premium to export parity stands at over 40%, significantly above the FY25 average of 20%. With domestic steel prices declining and imports rising in May 2025 compared to April, the brokerage expects this premium to normalize. Adding to the pressure, Lloyds Metal and Energy plans to increase its iron ore capacity from 10 million tonnes to 25 million tonnes in FY26. Citi also flagged a modest global iron ore surplus, especially with Simandou volumes expected to enter the market in 2026. Kotak emphasized NMDC's recent 2.5% month-on-month price cut in June, and noted that domestic prices are now just 8% below import parity — well below the long-term average of 20%. The brokerage expects further cuts, citing weak steel prices and rising merchant mining output as additional downside risks. With concerns over domestic and global supply, and weakening pricing power, NMDC could face headwinds in the near term, both brokerages warned. NMDC shares opened at ₹70.20 and touched an intraday high of ₹70.24, while the low stood at ₹68.50. The stock continues to trade within its 52-week range, with a high of ₹91.87 and a low of ₹59.53. Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information. Ahmedabad Plane Crash Aman Shukla is a post-graduate in mass communication . A media enthusiast who has a strong hold on communication ,content writing and copy writing. Aman is currently working as journalist at
