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Friday, August 21, 2009.

From Creamer Media in Johannesburg, I'm Jonathan Faurie.

Making headlines today:

BHP Billiton CEO Marius Kloppers reported this week that Iron-ore pricing is heading towards greater transparency.

Kloppers told journalists in Johannesburg that steel-pricing dynamics had changed towards shorter contracts.

In the past, many products, including oil, copper, aluminium and nickel, were sold on a benchmark-pricing basis.

But, over time, the processing step downstream elements, such as oil refining and steel making, tended to become a cost-plus business in which the raw materials, plus the conversion margin basically set the price.

He added that the steel market evolution will determine the price of iron ore in the future

JSE-listed diversified miner Exxaro has cut R1-billion off its planned R3-billion 2009 capital expenditure programme to take the total anticipated capex for the year to R2-billion.

The company, which increased revenue by 23% to R7,1-billion in the half-year to June 30, has also secured a R4,5-billion three-year bridging facility to finance its Medupi coal expansion.

New Exxaro CFO Wim de Klerk said that, while Exxaro had given guidance that it would spend R3-billion this year, it decided to reduce that to R2-billion, in light of the poor economic conditions.

Also making headlines:

Rio Tinto earnings drop by 65% as metal prices decline.
Mongolia lawmakers seek a metals windfall tax repeal
DRDGold growing lower-risk surface footprint, output falls
And, Transnet allocates its manganese export capacity.

That's a round up of news making headlines today. For more on these and other stories please visit miningweekly.com.