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Falling Iron Ore Prices May Influence BHP Billiton's Bid for Potash Corp

By Joel ScanlonAug 29 2010

Iron ore prices are set to fall by nearly 11 % as major miners such as Rio Tinto and BHP Billiton are likely to lower prices as demand for iron ore falls in China.

Prices per metric ton may drop to $129 for iron ore. This may be a reason why BHP Billiton’s chief executive officer Marius Kloppers said that they would be very disciplined about the ongoing bid for Potash Corp.

The company had given Potash Corp. of Saskatchewan Inc. A $130 per share proposal which Potash Corp had rejected. The restraint that BHP Billiton is showing in the deal may be based on the fact that The CEO is now setting out on a two week global tour to get share holder support for the deal.

While the doubling of its full year earnings announced this Wednesday seem to be putting pressure on the company to make an increased offer, they officials would be wary of delving into its robust cash reserves with the impending decline in sales of iron ore coming up in the next quarter.

Written by

Joel Scanlon

Joel relocated to Australia in 1995 from the United Kingdom and spent five years working in the mining industry as an exploration geotechnician. His role involved utilizing GIS mapping and CAD software. Upon transitioning to the North Coast of NSW, Australia, Joel embarked on a career as a graphic designer at a well-known consultancy firm. Subsequently, he established a successful web services business catering to companies across the eastern seaboard of Australia. It was during this time that he conceived and launched News-Medical.Net. Joel has been an integral part of AZoNetwork since its inception in 2000. Joel possesses a keen interest in exploring the boundaries of technology, comprehending its potential impact on society, and actively engaging with AI-driven solutions and advancements.

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BHP Billiton Plc. (2019, March 19). Falling Iron Ore Prices May Influence BHP Billiton's Bid for Potash Corp. AZoMining. Retrieved on April 18, 2024 from https://www.azomining.com/News.aspx?newsID=261.
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BHP Billiton Plc. 2019. Falling Iron Ore Prices May Influence BHP Billiton's Bid for Potash Corp. AZoMining, viewed 18 April 2024, https://www.azomining.com/News.aspx?newsID=261.