Report: ArcelorMittal in talks to buy BHP iron ore asset in Guinea

ArcelorMittal (MT) is in deep discussions with BHP Billiton (BHP) to acquire the latter's stake in the Mount Nimba iron ore deposit in Guinea for as much as $500M, WSJ reports.

BHP has been trying for months to find a buyer for its 41.3% stake in the rich deposit located close the Liberian border, as it seeks to exit west Africa and focus its investments elsewhere in the world.

Other partners in the project include Newmont Mining (NEM) and Areva (ARVCF).

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Comments (5)
  • james.
    , contributor
    Comments (1395) | Send Message
    The above article makes a vague statement that "Other partners in the project include NEM and ARVCF." . Does that mean that the other 58.7% of the Iron Ore Deposit is owned by NEW and ARVCF ? Or does it mean that NEM and ARVCF are joining in the bid for the Iron Ore Deposit as joint partners with MT ? May 9, 2014 at 7:27 pm PDT.
    9 May 2014, 10:28 PM Reply Like
  • just dan
    , contributor
    Comments (22) | Send Message
    per the 2013 Newmont Mining Form 10-K page 70 : BHP and Newmont own 43.5 % each in Euronimba with Areva (French Nuke) owning 13%. Now Euromimba owns 95% of the mining Concession with IFC (World Bank) owning the other 5% I believe. Long suffering Newmont shareholder since 1977.
    10 May 2014, 02:03 PM Reply Like
  • james.
    , contributor
    Comments (1395) | Send Message
    Thanks Dan for the information. James, May 11, 2014.
    11 May 2014, 12:58 PM Reply Like
  • Drumstar
    , contributor
    Comments (27) | Send Message
    Hey James; I don't know what it means for NEM; but, between the ABX attempt to buy Newmont, the favorable rights commission ruling, and whatever this transaction is, I like the "buzz"; and, I've picked up more shares of Newmont. I believe that an announcement to break ground on Minas Conga will instantly add around $5 to the share price.
    10 May 2014, 09:12 AM Reply Like
  • King Rat
    , contributor
    Comments (1902) | Send Message
    $5/share is a huge stretch, but looking at Newmont's ability to keep cash flow through operations strong in a difficult environment, and write downs aside maintain profits, combined with the confidence to reject Barrick, they look pretty good.


    Taking a 5 year horizon, gold stocks seem like a pretty good bet write now, with NEM looking good among them. I say 5 years because I have no idea what may happen over the next year or two, but fundamentally the price will reconverge with value.
    10 May 2014, 02:44 PM Reply Like
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