Another fall in WA’s $10 billion iron-ore race

It’s not often you get to see a two-horse race with more than $10 billion riding on the result, but in Western Australia today that is precisely what’s happening in the iron ore industry.


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You cannot write such an outrageously biased and blatantly wrong article and ask for readers not to comment! Firstly, Rio Tinto does mine magnetite, and not only mine it, but looking to expand it: Rio owns a majority stake in the Iron Ore Company of Canada and is making a very nice profit from those operations, thank you very much. The company is working to expand those operations from the 16-odd million tonnes per annum it produces now, to circa 25 million tonnes per annum. Secondly, if you have access to DSO iron, economic rationalism dictates you focus on that. There is nothing wrong with a magnetite business, per se. Focussing on the cheapest, lowest risk option is normal. Thirdly, please tell us a new haematite operation that has come in on budget, let alone under budget - there isn't one. The high inflation malaise that affects the resources sector is indiscriminate as to the commodity. Fourthly, citing CPM's Sino project is fatuous at best: the Chinese thought they could ignore local expertise and do it "like they do in China". Is it any wonder its grossly over budget then, when they have discovered Australia is a low corruption country? Finally, the author shows his complete ignorance of the role of magnetite in the iron making sector. The dirtier the haematite ores become, the more magnetite is required to blend that dirtg down. Most advanced steel making countries have been using magnetite for decades: its not a magnetite vs haematite argument there. Get real, get informed, and think with a little more sophistication than you have in this grossly ill-informed piece!

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