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Australian iron ore mines worry Goa exporters.


Date: 02-09-2009
Subject: Australian iron ore mines worry Goa exporters
PANAJI: Iron ore exporters in Goa say Australia's Yandi mines have emerged as a tough competition.

According to Goa Mineral Ore Exporters Association (GMOEA) executive director S Sridhar, the low grade iron ore produced by the relatively new Yandi mines in Western Australia and the region's relative proximity to China are posing a threat to Goa's exporters.

"China accounts for 80% of our ore exports. And the emergence of Yandi mines has certainly evolved as a threat," Sridhar said.

What has compounded the problem, he said, is that the Chinese government had slashed incentives for steel mills, which could impact their iron ore imports from Goa.

"We saw the best years of exports during the run-up to the Beijing Olympics. I doubt such a time would come again. The demand for iron ore from Goa would definitely go down."

South Korea and Japan were the other major markets for low grade iron ore.

Sridhar also said that while last year rates of low grade iron ore had fluctuated, assessment of the price for the forthcoming season could be made only by December.

Source : TOI

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