fortescue-metals-signs-us-deal-as-negotiations-with-noble-group-fail

Fortescue Metals signs US deal as negotiations with Noble Group fail

Hong KongÆs Noble Group pulls out of an investment in the Australian iron ore company, leaving the door open for Leucadia.

By Cherie Marriott

July 18, 2006

One of AustraliaÆs most promising iron ore producers, Fortescue Metals Group, has signed a $400 million equity deal with New York company Leucadia National after talks with Hong KongÆs Noble Group fell through.

Noble GroupÆs bid to become the third force in AustraliaÆs iron ore industry, and thereby securing valuable access to raw commodities, fell through on Monday after the two parties failed to reach an agreement on the right to market the iron ore to steel mills in China.

Noble Group made a bid for a 10% stake in Fortescue, which is about to kick off one of the largest new mining projects in Western Australia. Drilling in the companyÆs tenements in the Pilbara...

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