Perth-based iron ore miner Portman Ltd has increased its iron ore prices, following Rio Tinto Ltd's new deal with Baosteel, as it falls short of its $241 million off-market share buy-back.
In a statement today, Portman, which is 80 per cent owned by US company Cleveland Cliffs, said it was in the process of notifying existing long-term iron ore contract customers of the price increase.
Portman said fine and lump ore prices will increase by 78 per cent and 97 per cent respectively from the 2007 price, starting from January 1 or April 1 this year depending on the contract.
The move by Portman follows fellow Perth-based iron ore miner Mount Gibson Iron, which earlier this week notified its iron ore customers that lump ore prices will increase to $US202 per tonne and fine ore prices will increase to $145/t.
Earlier this week Baosteel agreed to pay up to 96.5 percent more for its iron ore under a term contract with Rio, higher than the 67-71 percent that Chinese mills and Brazilian miner Vale have clinched earlier this year.
Rio rival BHP Billiton has yet to settle on an iron price with its Chinese customers.
Meanwhile Portman said it had closed the tender period for its off-market share buy-back, where over 9.7 million fully paid ordinary shares were bought back at a price of $14.66 each.
The total consideration to be paid under the buy-back is $143.2 million. Portman said payment will be made by June 30.
Last month the company announced it was looking to buy-back up to 16.5 million shares or 9.39 per cent of outstanding shares.
Shares in the company closed down 29c to $17.30 today.
