For example, Mount Gibson, which started production at its Shine mine in Western Australia in 2020, has announced that the facility will be completed by the end of October, after which it will be closed indefinitely. The same will happen with his second venture, Koolan Island. Their combined capacity is 3.3 million tons of iron ore per year.
As noted by Mount Gibson, the cost of shipping ore from the Australian port of Geraldton to China has doubled from $15 to $30 per tonne. At the same time, the company bears the cost of shipping ore to the port for more. More than 230 km.
At the same time, prices for 62% concentrate have halved in the last three months and CFR China has dropped to around $100 per ton. The cost of raw materials of inferior quality, with 57-61% of the iron supplied by the company, fell further.
In addition to Mount Gibson, two other Australian companies announced at the end of September that they were closing their iron ore plants. Venture Minerals has suspended supply from Riley at its 1.6 Mtpa mine in Tasmania, and GWR has suspended production at C4 in Western Australia for 30 days. Previously, the company planned to buy about 1 million tons of ore from here this year and then increase its production to 2 million tons per year.
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