When BHP called off it's proposed takeover of Rio Tinto this morning, it's stock rose 10% while Rio Tinto's dropped 40%. Some analysts are speculating that Rio Tinto may have to dispose of some assets at fire sale prices. This begs the question of what will happen to the Resolution Copper mine near Superior.
Rio Tinto is majority owner of Resolution Copper and committed $652 million this past summer for the feasibility study for developing the 7,000 foot deep mine. It's also dependent on Congress passing a complicated federal-private land exchange.
With other companies cutting back their operations due to declining demand for copper and moly, we have to wonder what's going to happen with a huge and very expensive project.
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