Steelmaker company and world iron ore mine surpriseds with decision made by by the biggest iron ore mine company of Rio Tinto. This iron ore mine company decides agreement with mine company China, Chinalco. Instead Rio Tinto signs up with BHP Billiton.

Company decision of iron ore mine, Rio Tinto results loss at mine company China, Chinalco. Cancellation of this contract will result supply of iron ore that is is supporting industrial growth becomeed militant China to find difficulties.

Both mining giants announces in Friday a 50:50 joint ventures for their iron ore business, which will assist second saves $10 billion in iron ore produce and expansion iron ore mine.

Analysts said that the bargaining position of Chinese companies vis-a-vis the ore producers will be weakened after this move and Indian companies, which depend on global raw material suppliers for their finished producer will be hit too.

Sheshagiri Rao, director of JSW Steel, said, “This is not good news for the steel industry as the consolidation between two very large players will create a monopolistic situation. Gradually, we will see the coal scenario being replicated in the iron ore industry wherein miners will stop operations the moment they see prices coming down and thus control prices.”

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