Telegraph.co.uk: Anglo American to pore over BHP and Rio’s iron ore assets
What makes Anglo or Xstrata think they can outbid the Chinese for decent iron ore assets? If this merger happens on the condition that Rio Tinto is broken up to a degree, we will see what the value of a set of grade A [...]
Entries from June 2008
June 30, 2008
The sharks are swimming
June 27, 2008
Anglo and Bobby, a match made in hell
People keep a careful count when white people die, but they rarely care about anyone else. Being Jewish, I have a keen sense of history and the injustices of history. I clearly understand that the world is not fair, and I do not expect it to be, but I am always amazed by how ugly [...]
June 27, 2008
Starbucks spies
There has to be a business of sitting in a Starbucks and being a corporate fink.
I was in the city of London and between meetings. Being me, I opened my Mac, but as it has been a long week, I was playing Freeciv rather than doing real work. It is amazing how disarming a Mac [...]
June 25, 2008
A good promoter is hard to find
A good project needs a good promoter. I got into a fight with someone a while ago in which I said I would take skilled management over a good promoter any day. I still think I am right, but I am also starting to understand the other side. If you are a rational person, skilled [...]
June 24, 2008
Face is saved between the Chinese and the Aussies
Reuters: Baosteel, Rio agree sharp 2008 iron ore price
Face was saved between Australia and China by changing the lump and fines premiums rather than going for an across-the-board freight premium. The fact is, Australia ships more lump than Brazil and that is the ore price they really care about, and the blended price is [...]
June 23, 2008
CSN’s mine is up for sale
Shagang seeks to buy stake in CSN’s iron ore unit
Benjamin S. is always willing to sell his good assets to protect his not-so-good ones. CSN controlled Vale, and when the split came, Benjamin S. went the steel route. The fact is, he probably did not have a choice at the time, but had he instead [...]
June 20, 2008
NIMBY and steel
The new barrier to entry is the environmental license to operate. Okay, that seems like a simple statement, but whenever I look at industries that interest me–and I do not mean mines, but actual factories–the single largest barrier to entry seems to be the license to build the plant. This, coupled with at “not in [...]
June 19, 2008
Steel vs. Iron ore
It has been a long week and I have been traveling a lot, so sorry about the scarcity of updates. I have spent most of the week thinking about why I like to own mining assets and not steel mills.
When I started in this business, I read every history I could get my hands on, [...]
