Cotton & Western Mining Inc. (CWRN)

[Digra Ive]

MBIO update !!

MBIO Index 12 January 2011; $173.48/tonne; Index keeps pushing up further to $173.48
MBIO Index 12 January 2011; $173.48/tonne MBIO Index 11/1/11 $172.34/tonne % Change +0.7%/tonne $ Change +$1.14/tonne The MBIO Index today calculated to $173.48/tonne cfr Qingdao on a 62% Fe basis. This is a rise of $1.14/tonne on yesterday as the index pushes up to its highest level since the 5th May last year. Assessments for 63.5% Indian material also rose today, up to $180-$181/tonne from $178-$180/tonne yesterday. It has been reported that the East Indian state of Orissa is now considering restricting iron ore exports in a move similar to that made by Karnataka. It is likely that only a proportion of the iron ore mined will be available for export. It has been said that this move would be aimed at keeping iron ore reserves for use domestically. The spot market has been tight since Karnataka banned exports during the middle of last year in what was expect by many to be only a temporary restriction. The ban is still in place however, and this looks unlikely to change any time soon despite efforts by a number of miners to challenge it. A ban in Orissa, although not likely to come into force in the near future, would have a huge effect on supply and could push prices to new highs. Some other countries are continuing to look to enter the spot market with the current high prices and this is likely to accelerate should the ban go ahead