Pilbara Ports Authority bossRoger Johnston has predictedelevated...

Pilbara Ports Authority bossRoger Johnston has predictedelevated iron ore prices above$US200/t to last for another 18months with the world’s numbertwo producer Brazil continuingto underperform.The head of the WA Governmenttrading enterprisemade the comments after thePPA posted record annualthroughput of 724.7 milliontonnes in the 2020-21 financialyear, 676.4Mt of which comprisediron ore exports.The PPA — which operatesthe world’s biggest bulk commodityport of Port Hedlandas well as ports at Dampierand Ashburton — has estimatedthe value of commoditiespassing through its facilitiesat $160.56 billion in 2020-21, up33 per cent on the previousyear’s figure, mostly becauseof surging iron ore prices.Mr Johnston, pictured, predictediron ore prices toremain at elevated levels formore than a year on continuingstrong demand and ongoingsupply constraints forBrazilian metals giant Vale.He said supply from Brazilhad been disrupted since theSamarco dam disaster whichkilled 19 people in 2015 and theinterrupted supply had continuedwith the Mariana damdisaster at the beginning of2019 and more recently COVIDinfection rates.“So I think there’s a lack ofreliability in their mining andinfrastructure. I don’t believethat’s going to go away anytime soon,” the Port Hedlandbased10-year veteran of thePPA said.Mr Johnston was alsodubious about new, near-termsupply coming online fromAfrica, saying the Simandoudeposits of Guinea woulddeliver just 80Mtpa andcould take up to 10 years todevelop. “So I certainlythink it (iron ore) is going tomaintain its pricing for 18months,” he said.Mr Johnston’s predictioncomes as ironore producers thatexport from PortHedland jostle toexpand their portcapacity to cash inon the high prices.