News Wrap

IN THIS morning’s News Wrap: Vale seeks up to $US10 billion in iron ore streaming deal; Newmont, Zijin Mining seen as frontrunners for Super Pit stake; and banks continue to invest in fossil fuels.

Lou Caruana

Vale seeks up to $US10 billion in iron ore streaming deal

The Sydney Morning Herald reports that Brazil's Vale is considering raising as much as $US10 billion from the sale of up to 3% of future iron ore output to undisclosed Chinese companies, two sources with direct knowledge of the matter said.

Under terms of the deal, Vale, the world's biggest iron ore producer, would receive streaming financing from the companies, said the sources, who asked to remain unidentified because the discussions are still private.

Newmont, Zijin Mining seen as frontrunners for Super Pit stake

There are two buyers for Barrick Gold's $1 billion-odd stake in the Kalgoorlie Super Pit, according to the Australian Financial Review.

While there has never been more investor or corporate interest in Australia's new crop of mid-tier gold miners, the acquisitive Evolution Mining and Northern Star Resources are expected to dodge the Credit Suisse-run sale for Barrick's stake in the Australian gold mine.

Industry players reckon that leaves two heavyweights heading into the auction; Barrick's joint venture partner at the Super Pit, Newmont Mining, and China's much talked about gold producer, Zijin Mining.

Banks continue to invest in fossil fuels

The AFR reports Australia's big four banks have poured almost four times as much money into the fossil fuel industry as the renewable energy sector since the landmark Paris climate accord last December, according to campaign group Market Forces.

The four banks have lent $5.6 billion to the fossil fuel industry since the Paris summit, compared with $1.5 billion for renewables, the group finds.

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