Victorian iron ore dreams eat dust

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This one was always in the deep hopium category. From the ABC:

The company proposing a new iron ore mine at Nowa Nowa says it will have to re-evaluate the economics of the project.

Eastern Iron had hoped to export the ore from Eden but the owner of the bulk wharf facility, South-East Fibre Exports (SEFE), has withdrawn its offer.

SEFE exports woodchips and timber from the wharf but it announced earlier this year it will stop sourcing timber from East Gippsland.

The managing director of Eastern Iron, Greg De Ross, says he is investigating a smaller naval wharf near Eden or other port options west of Nowa Nowa.

“We haven’t done any detailed work on any of those other options as yet,” he said.

“SEFE in our initial analysis, the SEFE facility seemed to us to be the … logical and the best option but we’ll go away and look at some of these other alternatives.

“We’ll need to go back and have a look at these alternatives and see what the cost of them are, the vessels that can be accommodated at places like the naval wharf and what other options exist elsewhere in Victoria going west towards Melbourne and Geelong and so forth.

“We’ll have a look at all those options and see whether any of them look potentially viable.”

Good luck.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.