October 12, 2009

The World Steel Organisation says plans by Rio Tinto and BHP Billiton to merge their iron ore operations in the Pilbara should be blocked.It's called the European Commission to oppose the plan agreed to by Rio instead of a bid by Beijing-backed Chinalco to double its stake.The Organisation says the industry is not happy with the merger.Iron ore producer Fortescue Metals says it can finance plans to expand by itself.

Fortescue will spend $360 million to expand its Christmas Creek mine in Western Australia.The miner had hoped to get up to $US6 billion from Chinese financiers to fund the expansion.The local share market ended lower as profit takers moved in.The All Ordinaries Index fell nine points to 4,746. The ASX200 dropped 13 points to 4,740.