Simandou was not called the "Pilbara Killer" for nothing. On a...

Simandou was not called the "Pilbara Killer" for nothing. On a slow day for financial news, some second rate reporter would publish that the Simandou development would devastate the price of iron ore. 150 million tonnes of Fe67% iron ore being sold would crush the price for FMG Fe58% iron ore. Sell FMG now as you all will be doomed would be a headline! This ore body was discovered by RIO back in 1996 and has caused RIO nothing but grief ever since. The story has always been the same, in just a few years a rail line of 600km will be built in an equatorial climate through virgin rain forest to a port still to be built geographically the furtherest distance from the main potential customers the Chinese. Have a look the world map were Guinea is. Interestingly nothing in the Financial Review about this development or rather lack there of, Simandou as a development to compete with the Pilbara iron ore complex is effectively dead. The Chinese have no option but to continue to buy iron ore from Australia and Brazil for the foreseeable future.

Good Luck