Iron Ore Will Remain Strong - iMINCO Mining Training Information

Iron Ore Will Remain Strong

Rio Tinto and ValeA growing demand from China due to increases in steel demand for growing infrastructure, coupled with problems in their domestic supply, means a strong future for the world`s two biggest iron ore producers, Rio Tinto and Vale.

At an investor briefing in Sydney, Rio chief Sam Walsh, said things were looking bright for iron ore, which made up 99 per cent of Rio`s 2012 profit, according to a report in The Australian.Rio Tinto iron ore boss Andrew Harding said there had been a resurgence in steel demand in China in 2013.

“We also see positive signs for iron ore demand coming out of the Chine and urbanisation will remain a priority for the Chinese government and the recent trends in housing and infrastructure developments are likely to continue.”

Rio maintained its forecast that Chinese steel  demand, which will be just more than 700 million tonnes this year, will peak at one billion tonnes in 2030.

“Chinese domestic iron ore supply is highly price sensitive and as reserves are depleted, grades continue to decline and labour and power prices are increasing,” Mr Harding said. “It is inevitable China’s domestic iron ore cost base will continue to rise.”

Rio Tinto mining jobs in the Pilbara will continue to become available year after year as China’s increasing demand for steel is met by Australian iron ore producers.

US mining giant Vale’s head of iron ore strategy, Jose Carlos Martins, told investors in New York that China’s iron ore production cost was increasing much faster than in the rest of the world and as a consequence, long-term iron ore prices falling below $US100 per tonne seem unlikely.

This news comes as another of Australia’s largest iron ore producers, Atlas Iron, signed new and improved supply contracts for 2014 with existing and new clients including Chinese steel mills and trading houses.

Managing director Ken Brinsden said the improved financial terms of sale highlighted the demand for product.

rio tinto graph

Here`s a checklist to use before applying for Rio Tinto and Atlas mining jobs in Pilbara

Australia`s major iron ore producers: Rio Tinto, Fortescue, BHP, Gina Rinehart`s Roy Hill and Atlas.

What to read next:

Ref: Rio Tinto and Vale | Iron Ore Will Remain Strong

iminco logo

 

0 Comments

Leave a reply

Your email address will not be published. Required fields are marked *

*