Iron Ore Price, page-787

Gina Rinehart's Hancock Prospecting tips iron ore price recovery

Date
July 27, 2015 - 4:48AM

Gina Rinehart's most trusted lieutenant expects the price of iron ore will recover to $US80 a tonne despite surging supply and has flagged that the $US10 billion ($13.7 billion) Roy Hill project will start shipping ore in early October, later than scheduled.
Hancock Prospecting executive director Tad Watroba said the long-term fundamentals for the iron ore industry remained solid despite the price falling to a six-year low of $US44 a tonne in early July.
"It will go back to $US80 a tonne in my view," Mr Watroba told Fairfax Media. "You're seeing some price volatility at the moment but some of that high-cost supply will come off and in terms of China demand still remains strong."
Record demand from China sent the price of iron ore soaring to $US190 a tonne during the mining boom in 2011.
However, a flood of supply from large producers Rio Tinto, BHP Billiton and Brazil's Vale and easing demand has pushed the price back to historic lows. Iron ore was trading at $US51 a tonne on Friday.
Roy Hill Holdings, 70 per cent-owned by Ms Rinehart's Hancock Prospecting, had initially expected to begin production in September.
However, Mr Watroba said because of weather conditions and safety incidents the timetable had slipped slightly, until the second week of October.
The Roy Hill mine will eventually ship 55 million tonnes of ore a year, adding to record supplies from Australian shores of the raw material used for making steel.


Read more: http://www.smh.com.au/business/gina...e-recovery-20150726-gik0o5.html#ixzz3h3KK2PMX