Still little movement in the iron ore price complex for February 15, 2013, a little fall in 12 month swaps is all:
Interesting news this morning from Gina Reinhart’s banner iron ore project, the $10 billion or so Roy Hill. From the AFR:
Gina Rinehart’s Roy Hill iron ore project no longer needs the 1700 foreign workers it applied for under the first of the federal government’s enterprise migration agreements.
Executives working on the $9.5 billion project, which is majority owned by Mrs Rinehart’s Hancock Prospecting, say the labour market has cooled sufficiently to source all 8000 construction workers needed locally.
This one is a bit weird. Ms Reinhart has put cheap foreign labour as the front of her policy wishes for a a long time. Roy Hill is currently seeking to raise a lot of debt to finance itself and I can only surmise that this is tactical manoeuvre to reassure the banks that the costs for new projects are now under control.
That suggests finance is proving more than a little difficult.
