bhp billiton

With iron ore trading below $70 a tonne, some of Australia’s mining companies are losing money. With the price set to fall further the question is, what to do?

Australian mining company Rio Tinto courts the Chinese once again, forming joint ventures with Chinalco and Sinosteel soon after its proposed tie-up with BHP Billiton fails.

Australia’s vice-like grip on global iron ore and coal prices is threatened by rising production costs and looming oversupply.

Commodity prices were volatile in the first half of 2009, but in the second half companies gained confidence to start hedging again, making banks optimistic about 2010.

Chinalco invests $19.5 billion in Rio Tinto through a combination of joint ventures and convertible bonds, in a deal questioned by analysts and the media.

Temasek says Ho Ching will stand down as CEO later this year and be replaced by former BHP Billiton boss Charles Goodyear.