Rhinehrart Lieutanant warns MPs to prepare for Iron Ore price fall

Rinehart lieutenant warns MPs to prepare for iron ore price fall

Brad Thompson Reporter Mar 25, 2021

One of Gina Rinehart’s most trusted lieutenants says Australia’s political leaders must looks at ways to reduce cost burdens like payroll tax ahead of an inevitable fall in iron ore prices.Atlas Iron chief executive Sanjiv Manchandasaid the performlance of the mining sector and high iron ore prices were boosting government revenue for now, but politicians needed to think ahead.

“This [iron ore] pricing will reduce over time as supply from other parts of the globe, from current and new projects, come into the market,” he said.

“It’s critical that Australian producers and government look at costs and how these can be reduced, particularly government tape and compliance costs and eliminating payroll tax”.

”Some of the key areas we’d like reviewed is for government to look at reducing tape burdens and tax write-offs for upgrading plants that allow us to take advantage of changed Fe [iron] grade requirements.”Mr Manchanda said this would help Australian producers to maintain market share on a cost competitive basis”.

His comments come as Brazil’s Vale starts to regain lost ground in iron ore and China eyes major resource developments in Africa.