BHP Group will build 11 iron ore mines in Australia

BHP Group, the world's largest mining company, stated that it could build up to 11 iron ore mines in the mineral-rich Pilbara region of northern Australia over the next 50 to 100 years. The Melbourne-based miner signed a deal with the government of Western Australia to streamline environmental approvals for the long-term iron ore plan. BHP and its rivals are benefiting from a buoyant iron ore market driven by strong demand from China and supply disruptions from Brazil to Australia. Prices surged 65% in 2019, hitting their highest levels in more than five years. Benchmark spot ore prices were last trading at $119.50, according to Mysteel Global. "We see high demand for iron ore and high-quality iron ore," said Edgar Basto, BHP's iron ore asset president for Western Australia, in an interview with ABC radio on Friday. "We see the fundamentals of the industry being medium and long term." The recent drop in stockpiles at Chinese ports has helped support iron ore prices. The stockpiles, a key gauge of demand in the world's largest consumer, fell to 115.3 million tonnes, down by 7.7%, in June, according to Shanghai SteelHome E-Commerce. BHP is developing the $3bn South Flank project, which has the potential to lift Australia's total capacity to 290 million tonnes. Production was 275 million tonnes in the financial year 2018.