News Wrap

IN THIS morning’s News Wrap: Rio Tinto restarts Mozambique coal shipments; Rio Tinto shares attractive in weak market; and Atlas Iron shows faith in Shaw River.

Staff Reporter

Rio Tinto restarts Mozambique coal shipments

Rio Tinto has restarted hauling coal from its Mozambique mine along the Sena rail line after close to two weeks of inaction due to political instability in the region, according to the Australian Financial Review.

The global miner was forced to stop railing coal from its troubled Mozambique mine through the Sofala province following attacks from members of the former rebel Renamo opposition in late June. Renamo was attempting to block the Sena rail line between Moatize in the Tete province and the port of Beira, according to international reports.

However Rio, along with Brazil’s Vale SA, which also has coal operations nearby, have begun using the line again to export coal. A Rio spokesman confirmed on Sunday: “We are operating on the Sena rail line.”

Rio Tinto shares attractive in weak market

Analysts believe Rio Tinto, which is continuing its aggressive push to cut costs with the potential to halve its debt, is an attractive buying opportunity given recent share price weakness, according to The Australian.

A Credit Suisse analyst, Britain-based James Gurry, said the investment bank was revisiting the Rio investment case to ensure investors were not walking into a value trap.

Atlas Iron shows faith in Shaw River

Junior manganese explorer Shaw River has negotiated a $4 million line of credit from its major shareholder, Pilbara iron ore miner Atlas Iron, according to The Australian.

The Perth-based company announced late on Friday that it had entered into an unsecured loan facility agreement with Atlas Iron – which has a 53.45% interest in the junior – allowing Shaw to borrow up to $4 million to fund its operating costs.