@moorookamickRIO/China joint venture is tiny and is years away from bringing anything meaningful to the market. It sounds good in the media for some scary headlines but and that's about it.
Their joint venture will ONLY contribute
3.6% to the global supply AFTER it reached full production in 2028---------------------------------------------------------------------------------------------Production is expected to ramp up after 30 months to an annualised capacity of 60 million tonnes.
So, how does that look against global output for iron ore supply?
In 2023,Australia, the world’s largest supplier, accounted for around 960 million tonnes.
Brazil came in second place with 440 million tonnes, China with 280 million tonnes, and India at 270 million tonnes.
So, how much will Simandou alter this supply balance?
Rio Tinto and other development partners are expected to generate annual output of around 90 million tonnes by 2028.
Now, compare that figure to the 2023 global production of 2,500 million tonnes.
By my calculations, Simandou will contribute around 3.6% of global supply once it reaches full production.
It’s significant but hardly warrants the headline-grabbing ‘Pilbara Killer’ label!
(20min delay)