Mergers and Acquisitions in Iron Ore: An Update from Rio Tinto
Mining IQ recently interviewed Cody Whipperman, GM Business Development—Pilbara, Rio Tinto Iron Ore. Below is a snapshot of the interview. To read it in full please download the whitepaper.
Mining IQ: Can you give a brief overview of where the industry is at present in the Iron Ore M&A Cycle?
Cody: We’ve come off extremely high prices for global iron ore, driven primarily, if not exclusively, by demand from China. Inflated asset and equity vales have begun to deflate back to more reasonable levels, which should continue if the downturn persists and project financing remains difficult. The last few years have not been a great M&A environment for those seeking value. The next few years should be better and those with cash or access to financing should be able to take advantage of these opportunities and find real value. So, I think the next few years will prove to be good for value-driven M&A activity.
NB: Cody Whipperman is presenting at IQPC’s Mergers and Acquisitions in Mining Conference in October 2012.