Australia’s iron ore industry, which provides China with 50% of its iron ore imports, could increase its market share after China looks to withdraw support for unprofitable local state-owned iron ore mining operations.
While an official withdrawal could take years, China’s increasing demand for iron ore imports– already sitting at 70%– could prove too much for smaller mining companies such as Atlas and Brockman, reports WA Today.
To fund infrastructure solutions to handle the growth, such enterprises will have to strike deals with mining giants such as Gina Rinehart’s Hancock Prospecting, BHP and Fortescue to keep up with supply.
While Australia already provides China with over 50% of the nation’s iron ore imports, Fairfax Media reports the the market share is set to increase as it provides a cheaper sourcing alternative than competing countries such as Brazil.
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