FMG, BHP apply for mine expansion permits

From The Australian:

As iron ore prices threaten to slip below $US50 a tonne and Andrew “Twiggy” Forrest calls for production restraint, his Fortescue Metals Group and BHP ­Billiton have each applied for state government approval to boost iron ore output.

In separate applications to the West Australian Environmental Protection Authority in recent weeks, the pair have put in applications to build new Pilbara region iron ore mines.

The applications are to replace mines that will shortly run out, but they contain requests for permission to mine a combined 50 million tonnes of extra iron ore a year…

Not much capping going on there.

Comments

  1. These miners are worse than alcoholics, they are just going to keep going till they wipe them selves out.
    The price of iron ore , from Metal Bulletin:
    IO retreated to $US51.35 a DMT, Tuesday.
    It is now well below Fortescue Metals’ break even price of $US57 per tonne
    Mount Gibson is $US54
    Grange Resources, of $US57
    BC Iron $US61
    Atlas Iron’s $US64
    BHP Billiton and Rio Tinto still remain in the black with break even prices of $US35 per tonne and $US33 per tonne,

    UBS suggests that Roy Hill, that is Gina’s 13 billion mine, break-even price would be around $57 to $54 per tonne.

    What this also means is that West Australia is broke. WW

    • poor Gina, would be amusing is she eventually only earned the equivalent of $2 an hour from the mine,

    • Nothing like selling a finite resource at a loss. Shoot ourselves in the foot now and later. The government should be scrambling to get larger enviro bonds in place so these fools can clean up after they go bust.

  2. Is the price of Iron Ore flowing through to the price of steel? i.e. is construction of major infrastructure going to be cheaper as the price of steel drops along with labour etc? Or will the AUD drop mean steel remains (what seems like) ridiculously expensive in Australia?

    • once steel and blue scope keep sending me letters informing price increases ahead
      anything to do with stainless steel in Australia will be rooted if the dollar fall further