Iron ore wars: Andrew Forrest fights back
As the battle over iron ore wages on, mining billionaire Andrew Forrest is fighting back.
The Fortescue Metals Group chairman has now launched an all-out war on Rio Tinto and BHP Billiton, urging Australians to “standup” and bombard local MP’s and question if they should be operating in Australia.
“Write, email or ring your local MP. Be clear in your views. Ask the government to consider the multinationals’ license to operate in Australia if they don’t market Australian iron ore responsibly for all Australians.”
Forrest, which recently accused Rio Tinto and BHP Billiton of saturating the iron ore market, also revealed he is now being forced to lay off more than 100 workers a day in his own company. Last week, Forrest said the company's decision to scrap a family-friendly fly-in, fly-out roster was "personally devastating".
“As the person who founded the company it is heartbreaking, and yet my pain is nothing compared to the suffering of all those people now suddenly in unemployment queues,” said Forrest.
“However what is really galling is that the price has fallen off a cliff not just because of international forces beyond our control but because of the words and actions of companies, particularly London-based multinationals, who mine and export our iron ore.”
Iron ore, Australia’s biggest export, has plummeted in recent months. According to Forrest, for every dollar lost the economy loses $800 million and the government loses $300 million in company tax revenue.
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"When multinationals pursue business strategies which flood the market in a last-man-standing race to the bottom, we don't have free markets. Australians own the iron ore.”
“I call Rio’s attitude callous disregard of Australia,” Forrest said.
“It is these sorts of threatening statements that are causing the iron ore price to collapse and damaging the Australian economy.”
Newmont acquires Canada’s GT Gold in $325mn deal
Newmont, the world’s biggest gold miner, has acquired Canada’s GT Gold in a deal worth $325mn. The gold giant now controls the Tatogga gold-copper project in the Traditional Territory of the Tahltan Nation.
“With the acquisition of GT Gold and the Tatogga project in the highly sought-after Golden Triangle district of British Columbia, Canada, Newmont continues to strengthen our world-class portfolio,” commented Newmont President and CEO Tom Palmer.
“We look forward to continuing to build a respectful and meaningful relationship with the Tahltan Nation, including the community of Iskut. The relationships we have with Indigenous communities, First Nations and host communities are critical to the way we operate. We will partner with the Tahltan Nation at all levels, and with the Government of British Columbia to ensure a shared path forward as the Company understands and acknowledges that Tahltan consent is necessary for advancing the Tatogga project.”
Newmont’s acquisition includes the Tatogga project, comprised primarily of the Saddle North deposit, which has the potential to contribute future significant gold and copper annual production. There are also further exploration opportunities beyond the known deposits at Saddle North within the land package. The Tatogga project adds to Newmont’s existing interest in the prospective Golden Triangle through the company’s 50% ownership in the Galore Creek project.
Newmont is the world’s leading gold company and a producer of copper, silver, zinc and lead. A world-class portfolio of assets, prospects and talent is anchored in favourable mining jurisdictions in North America, South America, Australia and Africa. The American miner is celebrating its 100th anniversary this month.
With gold prices on the rise, the last six months has seen gold industry M&A activity accelerating. A recent Mckinsey report, advises that the industry need to be mindful of mistakes made during the previous gold price boom, when growth was chased unidirectionally by several companies.