From the ABC:
Mines Minister Bill Marmion is hoping the opening of more mines in WA will help boost confidence in the industry.
Atlas Iron’s newest iron ore mine, south-east of Port Hedland, will officially open today.
Mount Webber is the company’s fifth and lowest cost operation to be opened in the region since 2008.
Mr Marmion says the operation is expected to deliver about six million tonnes of ore a year and create 200 jobs once fully operational.
“The feeling, in not only iron ore, but in general, is upwards at the moment,” he said.
“I think last year it was a bit flat but I have been talking to a lot of people in a number of different commodities and they’re feeling there is a bit of an upswing in the sentiment and hopefully opening more mines such as this one will improve the current sentiment and hopefully be the impetus for more mines to open.
“It just highlights that it’s not just the big three or four iron ore companies that are successfully exporting iron ore through Port Hedland but there is room for mid-range miners such as Atlas to grow and expand their operations and be successful in the current climate.”
I’m encouraged that Mr Marmion is felling well. As:
A commodities expert says some Northern Territory iron ore producers may be struggling to stay afloat, despite a stable iron price because they are too small.
The price of iron ore is sitting around $96 dollars a tonne, down from around $130 in January.
Mark Pervan, the head of commodity research at ANZ, says that price is actually considered good by larger producers in the Pilbara, but not for junior miners.
“The big producers are well established and have sunk huge infrastructure costs into that part of the world so they now operate at very efficient levels,” Mr Pervan said.
“Producers in the Pilbara might be comfortable with an $80 to $90 dollar per tonne iron ore price.
“But the [West Australian] Mid West and Northern Territory producers, and include the South Australia producers here as well, may require prices closer to $100 per tonne,” he said.
Last week Sherwin Iron, east of Mataranka in the Northern Territory, announced it was going into voluntary administration.
Meanwhile residents of Pine Creek, south of Darwin, have been told the Frances Creek iron ore mine will be scaled back, costing hundreds of people their jobs.
And on the West Australia-Northern Territory border, the company KMG has laid off staff from its Ridges iron ore project.
It’s bloody painful watching these juniors chew through the log.
