[22/5/2021] Beijing’s battle with Australia has made the supply of iron ore not just an issue of price. With talk of war in the air, it is one of national security.
If Australia were to cut supplies off now, for example, the construction sector in China, the core of the economy, would struggle to stay afloat.
China is pushing Brazil, Australia’s main iron ore competitor, to get back online after accidents and COVID-19-related shutdowns. A much-touted mine in west Africa, considered to be years away, is being accelerated.
The 110-kilometre Simandou mountain range in Guinea is one of the best medium- to long-term solutions to reduce dependency on Australia and is widely regarded to be the highest-quality iron ore still untapped in the world. [Read more]
