Talk:Iron ore in Africa

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Arcelor-BHP tieup[edit]

BHP, Arcelor in alliance talks

20/1/2010, Source The Australian, Page 31

BHP Billiton and ArcelorMittal are considering a plan to combine their Liberian and Guinean iron ore assets.

If you look at the map, it should be clear that railway from the BHP Iron Ore deposits in eastern Guinea would probably be much shorter and cheaper (subject to the terrain) if it connected with the Liberia Iron Ore railway of Arcelor from Buchanan, which almost reaches the Guinea border in any case. The line purely in Guinea territory is much longer as it loops around Liberia and Sierra Leone.

While money would be saved, both capital and operating, a cross-border railway does run the risk of being "held to ransom" if relations between countries goes sour. That is always the problem.

Assuming that such problems can be solved, all things being equal, Guinea would be able to charge higher royalties for the cheaper route, compared with lower royalties for the more expensive route.

If the BHP ore in Guinea were to go via Liberia, then it would also be sensible that a proportion of train and other staff on the this international railway come from Guinea so that they can share both financially and in the raising of skill levels.

Tabletop (talk) 04:34, 22 January 2010 (UTC)

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