Australian Mt Gibson hikes iron ore prices 9.5%

The Australian Mount Gibson Iron Ltd (Mt Gibson) - 20 percent of which is owned by the Russian iron ore and steel producer Metalloinvest Holding - has announced that it will raise iron ore prices under contract by 9.5 percent effective from April 2007, in line with the major iron ore mines such as BHP Billion, Rio Tinto and Brazil's CVRD. The company's main mine, the Tallering Peak project which is located in Western Australia's emerging Mid-West iron ore province, produces three million metric tons of hematite ore yearly. In addition, Mt Gibson also expects to produce annually 2-3 million metric tons of iron ore from its Extension Hill project in the same region from 2008. Last week, Mt Gibson had finally gained control of a 90 percent stake in its main rival Aztec Resource Ltd. This gave the company access to Western Australia's Koolan Island iron ore project, which is expected to start iron ore deliveries next month.