Rio Tinto follows Fortescue with big iron ore price cuts

Rio Tinto has been forced to heavily discount its low-grade iron ore just days after Fortescue Metals Group did the same, amid surging supply and weak demand from Chinese steel mills, according to the Australian Financial Review.

Rio told its customers on Tuesday night that it would increase discounts from 6% to 13% from July 1.

This applies to its 57% FE Robe River fines and will see Rio receive about $US73 a tonne for its low-grade product.

The iron ore price has fallen 34% this year to be trading at $US89.30 a tonne. This is the first time it has traded below $US90 since 2012.

Marius Kloppers’ legacy exposes miners to price swings

Marius Kloppers may no longer be top dog at BHP Billiton, but his push to reform iron ore pricing, which generated billions of dollars for miners globally, is leaving the sector more exposed to slumping prices and shrinking margins, according to the Australian Financial Review.

The volatility associated with a spot price in major commodity markets such as iron ore and copper also means the big diversified miners are no longer shielded from wrenching price fluctuations.

“There’s no more diversification benefit from owning a diversified ­mining company,” said EIM Capital Managers chief investment officer Tony Wiggins .

Sundance chairman George Jones upbeat on funding

Falling iron ore prices and a dwindling share price have done little to dent the enthusiasm of Sundance Resources chairman George Jones, who has set a tight timetable for the group’s ambitious $4.5 billion fundraising efforts, according to The Australian.

Jones, who resumed the chairmanship of Sundance after a plane crash that killed the company’s board four years ago today, told a meeting of investors organised by stockbrokers Morgans yesterday that he expected to define the terms of its proposed debt raising by Christmas.