Shire sees benefits in iron ore joint venture development. While its $9 billion sale of New Brunswick’s B.C.-headquartered Sand Hills Mining, Inc. to CNOOC for $2.45 billion is seen as a good news for a company that accounts for nearly 2 percent of the country’s mining output, such a large percentage of iron ore production, there is a worry that the deal could have unforeseen consequences that could drive down the value of the project and result in the collapse of the consortium.
As B.C.’s share of iron ore production has grown, the government has been working on reducing the number of mines, particularly in the southwestern part of the province, in an attempt to ensure a balance between production from individual mines and industry-wide production. In the early 2000s, some companies sold mineral rights, allowing the provincial government to devel호 게임op those resources using their own infrastructure.
However, the industry still maintains it can no longer rely on individual mines being sold for iron ore production to boost its share, because governments now require new mines to be able to compete with existing companies for investment in infrastructure and equipment.
Sand Hills has sold its two copper mines to China’s Shenhua Heavy Industries Ltd. and China North Industries Corp. which both use sand mining equipment to mine steel from a project located outside of Sand Hills. The company’s decision to sell its copper mines may have be더킹 카지노en influenced by the sale of the B.C. mines to Chinese companies, but the decision to sell them to Shenhua was not in itself a major factor in the decision by Sand Hills to sell its copper mines, which now require a total of $11 billion in capital investment.
„We’re not making the best business decision,“ said Stephen Waddington, B.C. Minister of State for Business, Innovation and Employment. „There’s no doubt that if you’re g슬롯 머신oing to be selling two mines as part of a joint venture deal, there’s risks associated to that and there may well be issues.“
However, B.C. industry and industry-based groups are divided over whether to support a government effort to address the issue, arguing that existing coal mines in B.C. make up most of the country’s iron ore production, the largest of which are in northern B.C.
Sand Hills‘ plans to develop its coal project have met resistance from unionized workers, who argue that existing companies can still benefit from new coal-based mines because the new mines will be used to generate power at the company’s mines.