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China’s African iron ore strategy spells danger for Australia

The Simandou iron ore deposit in West Africa has the potential to change the dynamics of the global iron ore market and put China in the driver’s seat.

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With the iron ore price hovering around $US160 a tonne and Australia exporting about 20 million tonnes of ore from the Pilbara every week, the country is earning about $585 million a day from China.

Thanks to rising demand from Chinese steel mills, the revenue from each tonne of high-grade iron ore has risen 80 per cent in the year to date and is up 100 per cent on a year ago.

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Tony Boyd is the former Chanticleer columnist. He has more than 35 years' experience as a finance journalist. Connect with Tony on Twitter. Email Tony at tony.boyd@afr.com

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    Original URL: https://www.afr.com/chanticleer/china-s-african-iron-ore-strategy-spells-danger-for-australia-20210408-p57hnm