Enter your email to read this article
Read news on any topic, in one place, from publishers like The Economist, FT, Bloomberg and more.

Fortescue wary of China’s move on iron ore

Fortescue Metals Group is monitoring China’s move to increase the pricing power of its steelmakers and potentially undercut global iron ore prices.

“We’re staying close to our customers, monitoring the development of the China Mineral Resources Group,” Fortescue chief executive Elizabeth Gaines told a mining industry forum in Kalgoorlie on Tuesday.

China has set up the centralised body to secure iron ore needed for economic development, and analysts fear the new “cartel” could undermine the price of Australia’s top export.

China Mineral Resources Group was launched in Beijing last month, with exploration, mining, imports and exports, supply chain services, and investment within its scope, state media reported.

Ms Gaines said there is “no official feedback” on how the Chinese group might operate.

“Importantly for us, we’ve got 14 years of selling iron ore to our customers in China, including a range of channels,” the head of Australia’s third-biggest iron ore miner told the Diggers and Dealers Mining Forum.

“It’s important that we continue to deliver to our customers and that could include that buying organisation,” she said.

Fortescue shares were down 1.7 per cent to $17.90 at market close.

Top stories on inkl right now
Related Stories
Not enough women: miners meet in Australia under a cloud after sexism report
Global investor and economist Dambisa Moyo this week became the first woman ever to deliver the keynote speech at the mining industry's annual conference in Western Australia, a boost for the sector as it faces scrutiny over perceived sexism.
From analysis to the latest developments in health, read the most diverse news in one place.
3 Dividend Stocks to Buy With Yields Over 5%
The stock market has been under pressure amid soaring prices and widespread recession fears. Amid the volatile market scenario, buying dividend stocks BHP Group (BHP), Rio Tinto (RIO), and Lumen Technologies (LUMN), which yields over 5%, could be a wise strategy to ensure a stable income stream. Read on….
Pacific nations are extraordinarily rich in critical minerals. But mining them may take a terrible toll
Plundering the Pacific for its rich natural resources has a long pedigree. Think of the European companies strip-mining Nauru for its phosphate and leaving behind a moonscape.
Wild weather strikes Diggers and Dealers
Wild weather hit the Australian mining industry’s top event but a glittering awards night marked the close of Diggers and Dealers despite fears for the marquee.
ASX loses momentum, Australia posts 'another' record trade surplus as Nasdaq rebounds
Despite a solid start, the Australian share market wiped out all its earlier gains by the end of the day, despite a rebound on Wall Street which lifted the Nasdaq index to a three-month high.
One place to find news on any topic, from hundreds of sites.
Mining needs women, Fortescue boss says
Australian mining firms won’t be able to attract workers if they fail to stamp out sexual harassment, experts warn.