31/10/2014 – Glencore unit slows USD 900 million Mauritania iron ore project

Bloomberg reported that Sphere Minerals Limited controlled by Glencore Plc , slowed plans to develop USD 900 million iron ore mine in Africa after prices of the steelmaking material plunged.

The company said that the board is reviewing the Askaf project in Mauritania after approving development in April. Askaf North had been expected to begin output in early 2017 and is forecast to yield about 7.5 million tons a year once developed.

Mr Matthew Conroy , company secretary of Sphere said that “Taking into account the time involved in this review it is currently expected that the start of production will be delayed.

According to UBS AG , iron ore has declined 40% this year as the largest producers, including Vale SA and Rio Tinto Group , increase low cost output from Australia and Brazil , adding to a global glut. Global seaborne output will exceed demand by 26 million tonnes this year and 41 million tonnes in 2015.

Source – Kitco.com