Iron ore mining industry’s price hike expected

AUSTRALIA’s iron ore mining sector has been hit by a price hike by the iron ore producer OCP, as its boss announced the industry would be given a 5 per cent increase.

Key points:OCP boss Joe Taylor said the price hike was necessary to address demand concerns over the quality of the supplyThe company said the decision to raise the price was due to “higher iron ore prices”The decision comes amid increasing concern over the reliability of the industry’s supplyThe price increase is to help pay for costs to produce more iron ore.

Key point:The price hike is necessary to cover costs for production, supply, maintenance and marketingThe decision to increase the price is due to increased iron ore supplyThe iron ore industry’s average price has risen by almost 40 per cent over the past two years, and iron ore miners say the cost of producing and transporting the ore is rising by more than double.

“We have to do it, and we’ve got to do that in order to sustain the industry and sustain the supply,” OCP boss Mr Taylor said.

“There’s been a massive change in the industry.”

This will enable us to be able to produce the iron that’s needed in the market.”OCP is a major iron ore importer with a presence in the Kimberley, the Murray-Darling and other areas of Australia’s South West.

The iron industry’s chief executive, Joe Taylor, said the industry was not able to keep up with demand.”

Our demand has increased by around 40 per, 40 per per cent and that’s caused a lot of issues for us,” he said.

The Queensland Government has promised to boost investment in the iron industry.

Mr Taylor said he was happy with the industry taking the price increase as it was needed to help support the mining sector.”

It’s the right decision,” he told ABC Radio Brisbane.”

The higher price, we can continue to invest in the mine.

“Mr Taylor also revealed OCP had decided to raise prices for a number of other minerals, including copper, gold and uranium.”

Those minerals have been going through a very challenging time for them,” he explained.”

That’s why they’re getting an increase, because that’s what the market is asking for.

“The Government said it was committed to supporting the industry, and the Government said the proposed price increase was “necessary to address a number … of key issues”.OCP said it would pay for the cost to produce and transport the iron.”

To do this, we are required to increase our average price for our iron ore to $7.50 per tonne,” the company said.

Mr Williams said the increased price was necessary “to ensure we are able to continue to meet the demand that has been so strong over the last couple of years”.”

The Government has committed to increasing investment in Australia’s iron industry and to provide financial support to the sector,” Mr Williams said.


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