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The
agreement signed between the Mongolian government and Ivanhoe/Rio
Tinto has generated a resurgence of interest in Mongolia's coal and other
natural resource projects. Red Hill is in continued discussions with
interested parties. Please see the related article below.
Sincerely,
Ranjeet Sundher
President - Red Hill Energy
Rio Tinto warns on cheap
Mongolian coal
November 2, 2009 - 3:42PM
Mining giant Rio Tinto
has warned that cheap coal from Mongolia as well as congestion at the
Port of Newcastle in NSW could undermine export markets for the
Australian commodity.
Rio Tinto chief
executive Tom Albanese said he knew the leader of an energy company who
likened opportunities in Mongolia to a ''religious experience''.
''Coal from Mongolia to
China is happening. It is expanding, probably doubling every two years,''
Mr Albanese told an investors' conference in Sydney on Monday.
''Will that coal get to
the seaborne markets? I suspect it will.
''Will it get to the
seaborne markets at a lower delivered cost than Australian coal? I
suspect it will too,'' he said.
Mr Albanese said
problems at the world's biggest coal port, Newcastle, were unhelpful.
He said Rio Tinto's
Australian coal production was not at capacity purely because of
logistical reasons in getting the coal exported.
''We should remind
ourselves that Australia is not the only source of supply for the Asian
seaborne market, so if the coal chain does not pick up, others will find
their way to that market,'' he said.
Mr Albanese said Rio
Tinto was leading the way in moving towards a longer-term take-or-pay
arrangement at the Newcastle port facility.
Newcastle's coal port
has been plagued by congestion over the past 20 years, causing headaches
for exporters.
Mr Albanese said his
company was continuing to look to invest in Mongolia, where coal coal
horizons were 300 metres or more in thickness.
''We have coal interests
through our stake in Ivanhoe (Australia Ltd) but we also have coal
interests on our own in Mongolia via Rio Tinto explorations,'' he said.
AAP
This story was found
at: http://www.smh.com.au/business/rio-tinto-warns-on-cheap-mongolian-coal-20091102-hszz.html
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