News Wrap

IN THIS morning’s News Wrap: iron ore rush as China gets back in the groove; Palmer says no to Katter party alliance; and Rio backs investor call for clarity in reporting costs.

Staff Reporter

Iron ore rush as China gets back in the groove

Panic buying is driving the price of Australian iron ore well past $US150 a tonne, according to the Australian Financial Review.

Chinese steel mills are fretting over vanishing spot iron ore supplies from India and fearing cyclones will disrupt supply.

This has helped a major rebound in Australian iron ore prices, even in the middle of the traditional low season for Australian and Brazilian exporters.

Analysts have warned that India will export little, if any, ore in 2013.

Palmer says no to Katter party alliance

Queensland mining magnate and former Liberal National Party heavyweight Clive Palmer has ruled out forming a political alliance with federal Independent MP Bob Katter ahead of this year’s federal election, according to the Australian Financial Review.

While speculation has intensified in recent months about the two outspoken figures joining forces in a single party or as an alliance against the major parties, Palmer ruled out any coalition on Monday.

“I don’t wish to align with or join any political party,” Palmer said in a statement.

“We need all political points of view to work together to protect our democracy and values of the community.”

Rio backs investor call for clarity in reporting costs

Rio Tinto iron ore chief executive Sam Walsh has added his support to growing investor calls for the mining industry to provide greater transparency over its production costs, according to The Australian.

Walsh said investors risked being caught out in the confusion over the costs being reported in the mining sector as opposed to the true cost of production that included numerous additional charges as well as penalties for lower-quality ores.

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