Tribe Technology set to deliver healthy pipeline of orders from Tier-One miners. Watch the video here.
Delayed reports
*not* the solution
There was this quote in the SCMP. Implies that Simandou is the solution for China. Not sure I 100% get the rationale, but it does imply that the solution is to ramp West African high grade supplies:
'However, DRI technology requires a higher grade of iron ore than traditional blast furnaces, which Simandou has plenty of.
“So it’s highly likely that most of [the Simandou] tonnes will find their way into North American, European and Scandinavian markets, where there will be high demand for these volumes given the chemical and technical characteristics of the Simandou ore body – much to China’s disappointment,” Widnell said.'
https://www.scmp.com/week-asia/economics/article/3244134/can-china-diversify-iron-ore-imports-australia-brazil-mining-giant-rio-tinto-affirms-2025-africa
Good spot V10!
China deepens ties with Saudi Arabia at Hong Kong gathering
Beijing and Riyadh are expanding their economic relationship as they seek to reduce reliance on the US and its allies
https://www.ft.com/content/33e1e11d-b44e-4d51-9e35-65620bb2571f
Compliments your SCMP article on Simandou
https://www.scmp.com/week-asia/economics/article/3244134/can-china-diversify-iron-ore-imports-australia-brazil-mining-giant-rio-tinto-affirms-2025-africa
More green steel drivers, and a Saudi connection.
COP28: GOVERNMENTS DOUBLE DOWN ON THEIR COMMITMENT TO BUY GREEN STEEL, CEMENT AND CONCRETE, 05 December 2023
DUBAI – Today at COP28, some of the world’s largest purchasers of the most emission-intensive materials used in public construction projects strengthened their commitment to use their buying power to create a market demand for low and near-zero emission steel, cement and concrete, helping to drive the global decarbonization of these heavy industries.
The governments of Canada, Germany, the United Kingdom and the United States, member countries of the Industrial Deep Decarbonization Initiative (IDDI), pledged to adopt timebound commitments to procure low-emission steel, cement and concrete, and/or to set emissions reduction thresholds for whole project life cycle assessments to achieve net zero emissions in public buildings and/or built infrastructure.
The IDDI is a UNIDO-led network of international initiatives working to accelerate the shift of industrial organizations – both large and small – away from fossil fuels.
https://www.unido.org/news/cop28-governments-double-down-their-commitment-buy-green-steel-cement-and-concrete
A week ago Bandar Alkhorayef supported UNIDO. ALKhorayef also has ministerial oversight of Ma'aden:
RIYADH: Saudi Arabia is committed to supporting the UN Industrial Development Organization in achieving its goals, according to the minister of industry and mineral resources.
During his engagement at the General Conference of UNIDO held in Vienna, Austria, Bandar Alkhorayef affirmed the Kingdom’s commitment to supporting UNIDO, as reported by El-Ekhbariya.
This assurance reflects the Kingdom’s belief in UNIDO’s importance and global standing, acknowledging its pivotal role in supporting industrial development plans.
https://www.arabnews.com/node/2417486/business-economy
Everyone's talking about it, all in last 48 hours:
European Investment Bank interview at COP28: 'Green Steel, that's an amazing idea!'
https://www.eib.org/en/videos/eib-at-cop28-green-steel-and-innovation-to-end-our-fossil-fuel-habit
Climate enforcer John Kerry via a Fortescue tweet: '....that will be green steel.'
https://twitter.com/FortescueNews/status/1732703353820385319
Fortescue CEO after Belinga first shipment: 'We are seeing a diversified green iron and green steel industry...come on strong...'
https://www.cnbc.com/video/2023/12/05/fortescue-ceo-sees-strong-robust-demand-from-china-for-iron-ore.html
Does make you wonder whether international investors (read 'Strategic Entities') have organised some supranational oversight and guidance of Congolese business condition.
Little D yesterday:
(translation) I had an important meeting, this December 6, with Ms. Louise Pierrette Mvono, resident representative of the @Banquemondiale in Congo. We discussed our plan to join the G20 Compact With Africa initiative, which can help our country attract foreign direct investment.
Through this meeting, we began the first step of our accession process, which consists of establishing strategic contacts with leading multilateral financial institutions, such as the World Bank, the IMF and the AfDB. A technical meeting will be held soon between the government and these institutions to continue the process underway.
Ms Mvono insisted on the fact that joining the G20 Compact With Africa is a great opportunity for Congo. This will improve our economy and make our country more attractive for business. Indeed, this platform does not just encourage investments; it will also support us in improving our macroeconomic framework and our business climate.
https://twitter.com/ChristelSassou/status/1732464321391980995
Not a Star and not very Bright - there is nothing interesting or engaging about you and I couldn't care less what you say.
Having run spot and options trading desks at household names in the City I cordially invite you to have a go......
Too easy. A little bit of bait and in they come - Not a Star and not very Bright.
If there's such a thing as 'Size x Quality adjusted for CapEx and OpEx' then Zanaga's going to win hands down.
It can only be a matter of days now.
Afreximbank knew what they were talking about.
WOW
What's more is that, at best, Simandou touches 66.1% Fe. Zanaga'a blend will be 67.5%, and through the 67%Fe threshold for DRI.
Note also that Rio's share of the CapEx is a stonking $6.1bn. Zanaga's Stage 1 CapEx was $2.2bn in 2014 and we await imminent EPC figures that could reduce that by 20%+. Stage 1 revenues can then finance Stage 2 out to 30Mtpa at 68.5%Fe.
When it comes to infrastructure the Simandou are having to construct an immensely challenging 536km (+70km for Rio) railroad through jungle including numerous bridges and tunnels. Compare and contrast with Zanaga's 300km slurry pipe across easy terrain.
Zanaga - it's something of a no brainer!
SYDNEY--(BUSINESS WIRE)-- Rio Tinto will provide an update today at its Investor Seminar on the world class Simandou iron ore project in Guinea, which is being progressed in partnership with CIOH, a Chinalco-led consortium, Winning Consortium Simandou1 (WCS), Baowu and the Republic of Guinea.
Simandou is the world’s largest untapped high-grade iron ore deposit. The Simfer joint venture’s2 mine concession held an estimated Total Mineral Resource as at 31 December 2022 of 2.8 billion tonnes, of which Rio Tinto is today reporting the conversion of an estimated 1.5 billion tonnes to Ore Reserves that support a mine life of 26 years, with an average grade of 65.3% iron3 and low impurities. Rio Tinto is also reporting Mineral Resources exclusive of Ore Reserves of 1.4 billion tonnes at 66.1% Fe and low impurities.
Rio Tinto estimates that its initial4 share of capital expenditure to develop the Simfer mine and the co-developed rail and port infrastructure project is approximately $6.2 billion5.
https://www.riotinto.com/en/news/releases/2023/simandou-iron-ore-project-update
Thanks alwayshoping. At some point (hopefully in the very near future) the Saudis and our Minister are going to have to deliver on their fine words.
We've been NT to buy most of the day.
Sucks if you've been running an options straddle and are now short of delta and gamma - with nowhere to buy back.
Sucks....given that game changing news is fast approaching.
Sucks, I tell ya.
Eduardo Bartolomeo, Vale's CEO, has just weighed in on iron ore:
"The market is truly tight," the(sic) Bartolomeo said. "There is no supply coming".
https://twitter.com/baroninvestment/status/1731963673818611844
(not for Jiving)
The AFR on iron ore today; 2 things.
1. That Fortescue have this week shipped their first (very small) amount of iron ore from Gabon. Previously Fortescue have said that they could use it to 'blend up' their Pilbara rust and rubble though it is doubtful that they could even get the blend to 62% benchmark.
2. That Rio are making noise about Rhodes Ridge in the Pilbara. The article points out that benchmark is now a struggle as the best deposits have already been mined.
Rio will spend a further $400 million on exploration drilling at Rhodes Ridge between 2024 and 2028 to help define the best parts of the resource.
The benchmark ore product exported by Australia for decades has contained 62 per cent iron, but miners are struggling to maintain that quality now that many of the best deposits have been extracted.
Rhodes Ridge will be important for Rio in that context; it contains 600 million tonnes of resource at 63.9 per cent iron, according to Rio’s disclosures, out of an overall 6.8 billion-tonne resource at an average grade of 61.6 per cent iron content.
Rio has previously studied a mine at Rhodes Ridge producing 40 million tonnes a year, but the company’s iron ore boss, Simon Trott, said it could become much bigger.
https://www.afr.com/companies/mining/rio-tinto-plays-pilbara-long-game-as-fortescue-holds-on-to-gabon-dream-20231205-p5ep3l
> The divide between what Australia calls high or higher grade and true DRI-EAF compatible high grade at 67%Fe + is ever more stark. In the Net Zero (net lunacy) era the Pilbara could become one giant stranded asset;
>> Everything points to a scramble for real high grade and Zanaga has to be the ultimate prize.
So you do come by, read the posts, and chase down the links - yet still whinge and criticise. As I say, irony and hypocrisy.
Saudi mining champion, Ma'aden, have just tweeted the words of CEO Bob Wilt, from COP28:
At the #SGIForum, #Maaden CEO Robert Wilt shared how #SaudiVision2030 is uniting the Kingdom's efforts to combat climate change across all levels of government. This collaboration between the public and private sectors is critical in ensuring a greener future for all. 🌐🌿
https://twitter.com/MaadenKSA/status/1731929763810267419
> The point being is that Manara Minerals, the JV between PIF and Ma'aden, haven't yet secured a single ton of the high grade iron ore crucial to their green steel industry. They were tasked with this in January 23 at the Future Metals Forum. One year will be up on the 9th Jan coming at the FMF 2024. The clock is ticking on Vision2030 and MBS doesn't like either being kept waiting or having the best that money can buy.