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Gold/Mining/Energy : Mining News of Note -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (34773)	3/27/2009 2:58:23 PM
From: LoneClone	Read Replies (1) \| Respond to of 194042

New World Resources drops plan for Ferrexpo stake miningweekly.com By: Liezel Hill 25th March 2009 TORONTO (miningweekly.com) – LSE-listed New World Resources (NWR) has decided not to buy a 24,99% stake in iron-ore producer Ferrexpo, which had been offered to it by shareholder RPG Industries. NWR, which mines coking coal in the Czech Republic, said in October it would pay £126,6-million, or 86p a share, for RPG's 147,15-million shares in Ferrexpo. However, the NWR board decided this week that it would be “prudent” not to proceed with the acquisition. Slowing global economic activity has resulted in a sharp decline in steel demand, which has weighed on demand and prices for the two main steelmaking ingredients, iron-ore and coal. “The board noted the current challenging environment for the steel and coal sectors and continuing low visibility regarding the global economic conditions for the remainder of 2009,” NWR said in a statement. The decision was made after consulting shareholders and lenders, the firm said. “We recognise the limited visibility with respect to how 2009 will evolve and understand our shareholders’ concerns regarding the timing of this acquisition,” said NWR chairperson Mike Salamon. “Nevertheless, we continue to believe that the long-term outlook for both coking coal and iron ore remains attractive in the region and we will continue to work closely with RPGI and Ferrexpo to explore all future strategic options.”