The key phrase is economically viable.
"The cost of extracting iron ore is not much more than US$16 a tonne for BHP and Rio Tinto"
In the past 7 years, the iron ore spot price has ranged from $48/tonne to $220/tonne
Given that China does have a very significant reserve of iron ore (which has about half the iron content of Australian ores), my guess is that an iron ore price of $70 is economically viable for Chinese iron ore mines to operate with.
So technically China could operate without any iron ore imports from Australia.
Who says they will stop at one small vespene gas? Just moments ago, that "minor issue" as you call it didn't exist. China was already desperately trying to find alternatives for Australian iron ore and that "one small vespene gas" as you call it isn't small when you already exclude the biggest vespene gas on the map which is Australia. In the end that one small vespene gas will decide the victor.
is iron ore really a scarce commodity? I mean, there has to be other large deposits in Africa right?
Good post. And good point on the increase on the price of iron ore.
Is China planning to reopen/open its mines? With such high prices it is clearly sustainable for it to do it
China has been already looking for other deposits away from Australia. Until when are you going to say "other", "somewhere else"? Until nowhere left? Did the US say they would let China have those large deposits in Africa? China doesn't have any physical control to secure anything in Africa. The belt and road initiative does not block bullets or bombs.
AssassinsMace
Lieutenant General
Iron ore is more about the infrastructure needed to get it not that it's uncommon. I imagine a lot of untapped iron sources are in underdeveloped countries which means China will be flipping the costs to access it. If you're talking about landlock countries, China would have to make deals with neighboring countries in transporting it via rivers or across land to ports that can handle it. Then you know the US will employ communism and try to sabotage by funding local opposition to complain how only the few are getting rich and/or point to environmental concerns. Now you know why the US is against China's Belt and Road. The more access to raw materials, the less control they have over it.
solarz
Brigadier
Making mountains out of molehills.
China has iron ore reserves. The issue was that it was economically infeasibile to mine it. However as another member pointed out, recently , iron ore prices have dramatically increased thus allowing China to undertake such mining
Oh noes, the anglos did a coup in Guinea, now China has to keep buying anglo iron ore!!!
Give me a break.
look at Myanmar back during the asian pivot days; back then when the Myitsone dam was stopped by the Burmese, the Anglo propaganda was all about how it was part of China containment and yet look at the state of Myanmar now: still dependant on Chinese investment and trade and Chinese influence is such that anglo instigated civil war was prevented earlier this year.
looking at Guinea today, if the new regime wants to survive past next year, he’s gonna have to play ball with China.
Give me a break.
look at Myanmar back during the asian pivot days; back then when the Myitsone dam was stopped by the Burmese, the Anglo propaganda was all about how it was part of China containment and yet look at the state of Myanmar now: still dependant on Chinese investment and trade and Chinese influence is such that anglo instigated civil war was prevented earlier this year.
looking at Guinea today, if the new regime wants to survive past next year, he’s gonna have to play ball with China.