Iron ore companies Bounce Higher

THE China-led boom will boost Australia’s export revenue by at least $58 billion in the coming year, equivalent to almost $3000 for every person in the country.

Chinese millers agreed to pay Anglo-Australian miner Rio Tinto up to 96.5% more for their ore supplies under long-term contract this year, the largest-ever annual increase. This is against the annual price hike of 65% by Vale of Brazil.

Rio Tinto Group won as much as a 97 percent jump after renegotiationg the price of the steelmaking raw material Iron ore.

The federal Government’s commodity markets adviser ABARE predicted mineral exports would soar 50 per cent in 2008-09 to $178 billion

Fortescue rose as much as 8.9 percent, making it Australia’s 10th-biggest listed company with a market value of about A$35 billion ($33 billion)

Fortescue Metals rose 88 cents, or 7.5 percent, to A$12.59 at 2:18 p.m. Sydney time on the Australian exchange. It surpassed the $34.4 billion market value of Australia and New Zealand Banking Group Ltd.

Mt. Gibson Iron Ltd. gained 5.2 percent, Atlas Iron Ltd., building a mine in Western Australia, jumped 4.6 percent, and Sundance Resources Ltd. advanced 6 percent.

Analysts expect the surge in exports to bring Australia’s international trade account back into surplus for the first time in six years.UBS chief economist Scott Haslem said improved commodity prices should translate to an additional $4 billion a month in exports, enough to deliver a surplus within months.

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