THE NEWS WRAP: Mining boom worries lead Forrest to pump $40 million into Fortescue

Mining entrepreneur Andrew Forrest has forked out nearly $40 million to bolster the company he founded, amid concerns that the mining boom is beginning to slow.

 

Forrest said that he would “continue to accumulate” shares in Fortescue Metals, which has seen its value drop by 15% over the past week. A slump in the price of iron ore has been blamed for the company’s recent dip.

 

Riot police called in for Grocon protest

 

More than 100 riot police have moved in on workers protesting at the Grocon construction site in Melbourne’s CBD this morning.

 

The police moved in following a breakdown in talks between unions and Grocon management over the issue of union representation. Grocon has called for the blockade to end immediately, labelling it illegal.

 

US consumer spending rises

 

There are further glimmers of hope of a recovery in the US economy, with consumer spending edging up in July.

 

Shoppers’ outlay rose by 0.4% in the month, according to the US Commerce Department, although economists have warned that stronger growth will be needed in order to keep a lid on the unemployment rate.

 

Overnight

 

The Dow Jones Industrial Average dropped 106.77 points, or 0.81%, to 13,000.71. The Australian dollar dipped to US102.94 cents.

COMMENTS