Iron ore lobby dies with juniors

From the SMH:

The Magnetite Network, which was formed in 2009 to represent the interests of Atlas Iron, BC Iron, Citic Pacific Mining, Karara Mining and Asia Iron Australia, has suspended activities as its member companies cut costs amid weak iron ore prices.

“Just like a mine site that goes on to care and maintenance we hope to restart the network at a later date,” Magnetite Network executive director Megan Anwyl said.

Good luck with that.  They’re all doomed except Sino. With any luck the Minerals Council of Australia will also close and we can have free and fair elections. Here’s hoping…


  1. Uranium GeoMEMBER

    In today’s dog eat kid world HMV has to obtain funding from multiple sources. As the IPA is still a going concern I thing he will be around for a while to come.

  2. Will we also see an end to reporting Gina and Twiggy’s brain farts as though they were the words of a prophet?

  3. Nah, 3d will be around for a while given they need someone to represent them in ‘new media’. But if his agency has had a cut to the retainer, we may see less of him.

  4. 3d1k is officially and completely screwed…..

    Jeremy Clarkson joins Guardian drive for fossil fuel divestment

    “The disgraced former Top Gear presenter Jeremy Clarkson has become the latest celebrity to support the Guardian’s campaign for fossil fuel divestment.

    Following what he described as a “dark night of the soul”, Clarkson said he hoped to “regain the trust of the British public” by dedicating his time and financial resources to sustainable energy, road safety and forging mutual understanding and tolerance between people of different cultures and religions.

    The 54-year-old said that the “fracas” last month, in which he punched a producer on the patio of a North Yorkshire hotel, had prompted him to “re-evaluate his priorities” and reflect deeply on his life, behaviour and carbon footprint.
    The argument for divesting from fossil fuels is becoming overwhelming
    Read more

    The BBC opted not to renew Clarkson’s contract after the incident at the Simonstone Hall hotel, in the Yorkshire Dales, which left producer Oisin Tymon needing hospital treatment. More than 1.5 million Britons signed an online petition calling for Clarkson to be reinstated and for a relaxation of the laws against assault in cases that could be demonstrated to involve banter.

    “Top Gear was a wild ride for an ordinary bloke like me,” said Clarkson, speaking to the Guardian at a pub near Chipping Norton, Oxfordshire. “But there comes a time when a man’s got to ask himself what he really stands for. And for me, that’s sustainable energy, traffic calming and an end to xenophobia and prejudice.”

    Clarkson said he had experienced a “wake-up call” after being sacked by the BBC, which he likened to “ramming on the brakes on the autobahn to Damascus”.

    “It was like a pit stop,” he said. “One minute I was cruising along in a Porsche Cayman S to Dark Side of the Moon. The next I was in a bloody Prius humming along to Keane.

    “If you’d told me a month ago that I would be joining the tree-huggers in their hand-knitted kerb-crawlers I’d probably have punched you.

    “But then I thought: ‘Where does physical aggro get you – apart from a few penalty points on your P45?’ I stopped off for a pint – and there was a bloody Guardian with all this stuff about climate change.”

    Skippy…. RIP 3d1k

  5. Tassie TomMEMBER

    It’s a “death spiral”.

    In these dark days of corruption and quasi-communism, lobby groups are important. I myself are a member of two of them (although mine genuinely have other functions too.)

    Death spiral: Business struggles –> Cancels lobby group subscription –> Lobby group no longer performs lobbying function –> Business struggles even more.

    Some examples of what a lack of a lobby group may mean for these businesses: Royalty relief – GONE; Publicly funded infrastructure (road, rail & ports) for their benefit – GONE; Relaxed 457 visa rules – GONE; Diesel fuel excise rebate – possibly GONE.

  6. The Minerals Council is an august body working tirelessly in the interests of the nation and its exports.

    Democracy better served by getting rid of the Senate.

  7. Sorts like him retain a healthy skepticism in regard to new fads. He is a traditionalist in the truest sense, cognisant the climate changes, as it always has. Not one easily swayed by histrionic alarmism. A man’s man…and a ladies one too I’d reckon.

  8. According to data released by the China Federation of Logistics &
    Purchasing (CFLP) China’s steel purchasing managers’ index (PMI) fell to
    its lowest level in over a year, in March despite it being a traditional peak
    season for the steel sector. The index stood at 43 points in March,
    compared with 45.1 points in February. The index has remained below
    the 50-point threshold for an eleventh consecutive month, indicating the
    country’s steel market remains in contradiction

  9. Iron ore’s 10-year low not slowing China production push

    Apr 01, 2015 17:28:02
    To understand why iron ore prices have dropped to a 10-year low, look no further than a $10 billion mine being developed by China’s state-owned Citic Ltd. on Australia’s remote northwest coast.

    The Sino Iron project, the world’s costliest mine, has been called a “disaster” by critics. It began shipping iron ore in December 2013, about four years later than planned. Now, even with prices at their lowest level in 10 years, Citic is adding four production lines at the project, a plan that could pump millions of tons of ore into an already saturated market.

    The effort underscores China’s refusal to capitulate to slumping prices as the Asian nation fights to diversify its future supply, said Caue Araujo, Sydney-based iron ore industry director at the research company AME Group.

    “China’s government is looking at the long term and at securing future supply, rather than trying to obtain quick gains or make profit in the short term,” Araujo said. “It’s more strategic than commercial at this stage.”

    Iron ore fell to $51.35 a dry metric ton on Tuesday, according to data from Metal Bulletin Ltd. That’s the lowest since 2004-2005, based on the data and annual benchmarks compiled by Clarkson Plc, the world’s largest shipbroker.

    Market Share

    By most measures, iron ore producers should be curtailing output to boost prices at this point. Instead, the biggest producers — Vale SA, Rio Tinto Group and BHP Billiton Ltd. — are sticking to their guns to protect market share. And China is pressing ahead not just with Sino Iron, but also with other iron ore projects worldwide, while many of its high-cost domestic mines continue to produce.

    “For the Chinese companies, many projects will be slowed,” said Li Xinchuang, deputy secretary general at the China Iron and Steel Association, by telephone from Beijing. “For the nearly finished projects they still have to take the risk and finish them quickly.”

    Despite an economic slowdown in China that has curbed demand for the ore, the country remains an enormous market and Rio Tinto forecasts steel production will expand through to 2030. To help satisfy those future needs, Chinese companies are looking abroad to diversify the nation’s iron ore supplies for years to come.

    “Sino Iron is a 30 year plus project,” Citic said in an e-mailed statement. “Citic is committed to its completion and operation in the long-term.” The company declined to comment on the project’s costs.

    Australia, Peru

    Baosteel Group Corp. is evaluating options to develop a A$7.4 billion ($5.6 billion) project in Australia while Nanjinzhao Group Co. is progressing with a mine in Peru.

    “A target of the Chinese government is to ensure that at least 50 percent of their future iron ore supply comes from a Chinese mine, though not necessarily a mine in China,” Araujo said. “That’s why China is in Peru, China is in Africa, China is in Australia.”

    Chinese domestic iron ore production rose in 2014 and is expected to remain strong this year, according to Australia & New Zealand Banking Group Ltd. Major cuts to Chinese output are unlikely in 2015, Rio Tinto, the second-biggest exporter of the commodity, said on Feb. 12.

    “Pundits have regularly commented that a supply response would quickly follow a collapse in iron ore prices as high-cost Chinese iron ore miners, who represent one third of global iron ore supply, would be forced to reign in their loss-making operations,” Morgans Financial Ltd. said in a March 24 note to clients.

    “However,” the note added, “this has not unfolded.”

    Chinese steel mill operators that also own iron ore mines have maintained output, while others operations are being aided by support from government and banks, according to the note.

    Citic Writedown

    Citic, China’s largest conglomerate, last week booked a $2.5 billion writedown on Sino Iron in full-year results for 2014. It’s continuing work to add four production lines, with two already constructed. Spending on the project reached $9.9 billion by the end of 2013, the company said in a filing last year. In a 2007 filing, a Citic unit estimated it would cost $1.4 billion for the mine to produce an initial 1 billion tons.

    Sino Iron has a capital expenditure intensity of $333 a metric ton, the cost of development divided by projected output at full capacity, according to Bloomberg Intelligence. The global average last year was $153 a ton and the data show Citic’s mine is the costliest iron ore project in the world.

    The project has “been a disaster,” Michael Komesaroff, managing director of Brisbane-based metals industry consultant Urandaline Investments Pty, said in 2013.

    Capital Cost

    “It is certainly the highest capital-cost mine because it’s a magnetite mine,” said Michael Elliott, sector leader for Ernst & Young LLP’s global mining practice, by phone from Sydney. Magnetite ore requires more processing and expensive infrastructure must be built before production begins. “It’s more exposed to a fall in the iron ore price.”

    Still, some analysts say they believe Sino Iron may eventually prove to be a wise investment once it’s supplying Chinese steel mills with concentrate tailored to their needs at lower prices than domestic mines.

    “When you think that China is a deep pocket investor which is targeting long term supply, it starts to make sense,” AME Group’s Araujo said.

    Source: Bloomberg