Australia set to cash in on Brazil iron ore mine closure

Australia’s big iron ore miners are set to benefit immensely on surging iron ore prices as Brazil’s Vale mine is hit with pandemic problems with 188 workers tested positive for COVID-19.Iron ore prices for the month of May jumped dramatically from approximately US$80 ($113) per tonne to over US$102 in part due to the forced closure of the Brazilian’s mine.

Vale’s Australian rivals – Rio Tinto, BHP and Fortescue Metals Group – are all primed to further benefit from the news as fears of a supply crunch push up the price of the vital steelmaking ingredient.

According to forecasts Australia’s iron ore exports are expected to be worth $81.5 billion for the 2019-20 financial year. Iron ore drove the nation’s exports in March, with a 36 per cent monthly increase and a 47 per cent increase on last year.

Fortescue Metals achieved a record iron shipment to China during the March quarter and BHP have indicated plans to increase their export capacity in Port Headland to 14%.

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This content is extracted from the article ‘Iron ore prices soar as Vale shuts mines down’ by Tara Hamid | Australia Mining | Tuesday 9^th June 2020.