BHP Billiton iron ore deal seems likely to collapse.

Regal Group International has been informed that the highly controversial joint venture between mining giants Rio Tinto and BHP Billiton may be dead. Neither company is at this stage prepared to deny or confirm this. An Australian newspaper, quoting from comments made by a leak from the Rio Tinto boardroom said that Rio Tinto is calling off the US$ 120 billion deal.

After the recent Rio Tinto board meeting the firm said it "acknowledged recent communications from regulators that indicate potential obstacles to achieving clearance for the joint venture," however the company emphasized to Regal Group International sources that "the Rio Tinto board has not made any final decisions about possible outcomes."

The joint venture, which would be Australia’s largest merger to date, would see the business valued at $116 billion and was expected to save the world’s second and third largest mining firms around $10 billion through cost sharing on the project, while Rio Tinto with the bigger Pilbara operation would have earned $5.8bn from BHP to equalize their holding.

Regal Group International has learned that the newspaper report indicated that in addition to the numerous regulatory issues surrounding the deal, Rio Tinto had begun to question whether the joint venture with BHP was still the correct direction for the company financially.

The agreement with BHP was reached in mid-2009 when Rio was desperate for cash and was seeking to reduce its $39 billion debt after its acquisition of Canadian aluminum group Alcan. A significant improvement in commodity markets, a $15 billion rights issue and disposals have seen the mining giant cut its debt by more than half, putting it in a position, according to Regal Group International analysts  where it no longer needs the $5.8 billion BHP equalization to rebalance its ledger.

Regal Group International is a full service commodity trading advisory offering services to traders ranging from the beginner, with no experience in the markets at all, to the advanced trader who is looking for an avenue to place fast efficient orders.

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Rio Tinto expects Africa to become a big player in copper's future.

Rio Tinto Group, the world’s third-largest mining firm has told Regal Group International that it believes Africa has the potential to play a major role in satisfying strong medium term growth in global copper demand. "The medium term outlook is quite positive. There's a very strong picture on demand, supply looks like it's going to continue to be constrained," Andrew Harding, CEO for Rio Tinto Copper  said at a recent African Copper conference in London. "African copper will play a pretty significant part in the global future for the industry."

African copper deposits, generally of a high grade, make up about one-fifth of global resources with a better than 1.0 percent copper grade. Rio Tinto’s Harding said it was possible for African copper output to increase from 1.2 million tonnes to around 3 million tonnes a year by 2015. Citing falling ore grades in some of the globe’s major mines and higher operating costs and increased technical issues related to having to go to increasingly greater depths to find new deposits, Harding highlighted the importance of African production.

Regal Group International ‘s research shows that Rio Tinto owns a 57% stake in South Africa’s Palabora operation which produces about 80,000 tons of copper annually. Africa offers great opportunities, but also great challenges," Harding told the conference referring to factors such as governance, legislation and infrastructure. Copper continued its bull run, reaching a 27-month high in London and New York recently. “There’s no stopping the bullishness in the market right now and there’s this frantic buying into commodities as the dollar continues to weaken. The fundamentals are definitely improving, especially for copper,” one market analyst told Regal group International.

Regal Group International is a full service commodity trading advisory offering services to traders ranging from the beginner, with no experience in the markets at all, to the advanced trader who is looking for an avenue to place fast efficient orders.

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Regal Group International: Rio Tinto iron ore demand downturn say so.

Regal Group International said the Rio Tinto Group, the world's second largest iron ore exporter in Dalian's recent press conference to meet any Chinese power energy efficiency goal, try some not seen falling demand after cutting iron and steel makers. "We haven't seen any drop forward our shipping schedule the rest of the year" reporter said the Rio Tinto mining company, Managing Director of sales and marketing. "We are in full operation and running"

You are last ditch Chinese Government trying to achieve goals for limiting energy consumption to steel makers recently began. China increased 628 million tons of steel ore of the iron used for demand in the world's largest steel producer last year. Rio Tinto Regal Group International has informed maintain or possibly even increase level of last year and the same iron ore China imports. World's top three iron ore stone export Vale SA, Rio Tinto and BHP Billiton advocating quarterly contracts this year the 40 years of enhanced pricing custom discard two yearly price of three quarters.

"Our stand has been give the opportunity to work with this year, quarterly pricing mechanism" said Rio Tinto Regal Group International. "We see what they think, all of Japan, Korea, China and keeps talking about their need to evolve". Regal Group international trading traders beginner is service products advisory services ranging from advanced trader looking for a way in.

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