Australian miner Fortescue Metals Group (FMG) has begun production and iron ore processing at its Eliwana mine that can process 30mn mt of ore per year.
According to media reports, the company expects demand for iron ore to be stable or increase in 2021, with steel demand rising in many countries, even outside China. Supply, however, is forecasted to remain tight. In fact, Danny Goeman, director of sales and marketing at FMG, said that while demand for steel in China will continue to rise, iron ore stockpiles at Chinese ports may fall below 100mn mt in Q1 2021 because of supply disruptions due to Brazil’s wet season and Australia’s cyclone season in this period.
Relations among China and Australia continue to remain strained. Nonetheless, Goeman noted that steel demand recovery in India, Japan, and South Korea has led to a divergence of China-bound shipments to these countries.
FMG’s chief executive officer, Elizabeth Gaines also indicated that the company is on track to complete its $2.6bn Iron Bridge mine, which will export its first tonnage in H1 2022. The company is also building its own natural gas and solar power infrastructure to meet net-zero emissions by 2040.