Fortescue Metals Group’s share price has surged following the burst of the Brumadinho dam in Brazil ― the country’s worst mine disaster on record.
Australia is one of the world’s largest iron ore producers. The metal is the foundation of the country’s biggest export industry.
Over 90% of extractions occur in Pilbara, Western Australia and are sent to China — the biggest purchaser of iron ore.
Our editors cover this sector frequently, highlighting the major Australian players, BHP Billiton Limited [ASX:BHP], Rio Tinto Limited [ASX:RIO] and Fortescue Metals Group Limited [ASX:FMG], as well as the smaller contributors. There are also many mid-tier, smaller companies contributing to the booming industry.
Iron Ore is Economically Significant
It’s an economically significant area — the trade accounts for a sizeable proportion of Australian employment — which we regularly review, from performance updates to the latest news.
The extraction process of iron ore consists of blasting hematite and magnetite rocks, removing resulting material from large open-pit mines, then crushing, screening and blending for local consumption or export. Once blended, 98% of mined material is smelted and alloyed with other metals (including nickel, chromium, manganese, vanadium, molybdenum or titanium) for use in varying types of steel production.
Iron ore is a relatively low-cost material and is used 20-times more than any other structural building material.
It’s the most desirable building product, because of its strength, durability and incredible versatility.
It’s an indispensable tool to civilization and has been used for the last 3,000 years.
If you’re interested in learning more about the industry and reading the latest analysis on iron ore, you’ve come to the right place. Read on below.
As we’ve been covering here at Markets & Money, the price of iron ore has experienced a recovery. Today, we will be looking at the four major ASX mining companies and their prospects in the…