In the news yesterday, FMG has an application in to lift its...

In the news yesterday, FMG has an application in to lift its export cap by 35 million tonnes to 210 million tonnes pa, BHP an application to raise its exports to 330 million tonnes, up by 40 million tonnes, and Roy Hill by 10 million tonnes to 70 million tonnes, while the PPA at Utah Point ( servicing Rinehart's Atlas Iron and also Mineral Resources) wants to increase by another 5 million tonnes. This meaning the miners would ship an additional $15bn in combined value of iron ore in the current financial year if prices stayed at today's levels (which of course they won't!).

I mean- looks like the Pilbera miners really do want to sort of dampen down the IO price a bit and possibly take the heat out of the motivation to ramp up the Simandou project in Guinea quickly.

Pilbara miners plan $9bn iron ore rush

Pilbara iron ore exporters have applied for a combined 90 million-tonne increase in export ¬capacity for the steelmaking commodity as they rake in the cash from high prices, with Gina Rinehart’s Roy Hill mine the latest to join the rush.

Thursday’s economic update by Josh Frydenberg underscored the importance of iron ore to Australia’s coronavirus-hit economy, forecasting the commodity could deliver a $9bn sweetener to GDP if prices remain high until the end of the year, and up to $2.2bn in tax receipts over the next two years.


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