Iron Ore Is the Key Priority of Glencore, Say Reports

Author: Paul Ploumis07 Aug 2014 Last updated at 05:49:13 GMT

BERN (Scrap Monster): London listed Glencore Xstrata has expressed an interest in Guinea iron ore deposits, even if the company has not aimed for a share in Simandou.

Glencore is the latest major mining company that seeks for iron ore assets in Guinea. Many other companies have come forward for the assets in Simandou, which is one of the biggest deposits.

However, BSG Resources of Israel is looking for arbitration and to sue companies, which invest in its former license area. Recently, Guinea government has withdrawn the mining permit of BSG Resources for achieving the mining rights illegally.

Some sources linked to this news said that Glencore has also shown their interest in Simandou. But, the company declined to comment over that. Reports show that the mining major has the technical and financial ability to do big iron ore projects in the region and it was waiting eagerly to commence the projects as quickly as possible.

Reports say that Glencore could force the majors such as Rio Tinto and Vale to develop the iron ore projects in Guinea as soon as possible. Previously, the company had criticized its rivals Vale, BHP Billiton and Rio Tinto for acquiring costly Greenfield projects and for producing large amounts of excess iron ore that has led to depressed prices by one third this year. When compared with its rivals, Glencore has only smaller exposure to iron ore.

Reportedly, iron ore is the key priority of Glencore and is keen to become one among the major five iron producers with big projects in Africa.