The Pilbara Killer is a budget killer

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The Simandou iron ore project is nicknamed the “Pilbara killer” because it threatens Australia’s dominance in the global iron ore market, particularly the Pilbara region of Western Australia. This is because Simandou offers massive volumes of higher‑grade ore that could reshape pricing power and supply chains.

Simandou in Guinea holds reserves of at least 3 billion tonnes of high‑grade iron ore, with Fe content around 65–67%, significantly richer than much of Australia’s Pilbara ore.

Once fully operational, Simandou is expected to export up to 120 million tonnes per year, rivaling the output of major Pilbara mines.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.