MORE IRON ORE: RIO/BHP JV UNDER TOUGH SCRUTINY

摘要

The synergies are expected to come from: combining adjacent mines into single operations; reducing costs through shorter rail hauls and more efficient allocations of port capacity; blending opportunities that will maximize product recovery and provide further operating efficiencies; optimizing future growth opportunities through the development of consolidated, larger and more capital efficient expansion projects, and combining management, procurement and general overhead activities into a single entity. The JV plan originally was announced June 5 in the form of a nonbinding agreement; on October 15, the marketing aspect of the proposal was eliminated. This elimination was the only material change to the binding agreement, which was announced on December 5.