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Australia threats losing top area in worldwide steel supply chain, Fortescue says

Australia risks losing its dominant position in the international iron ore market if it does not relocation promptly to produce green iron, and would succeed to learn lessons from the near wipeout of its nickel market, Fortescue CEO Dino Otranto stated on Tuesday.

Australia is the world's greatest supplier of seaborne iron ore, representing around half of worldwide supply. However the Pilbara grades collected from the country's west are generally regarded as too low to be turned into steel without utilizing coal

That indicates that as steel makers decarbonise by decreasing coal. usage, they are turning somewhere else for iron ore, which could strike Australia's leading export earner following the pain suffered in its nickel industry, Otranto informed the IMARC conference in Sydney.

Competitors is revving up on growing investment in green steel jobs in the Middle East, that are not using Australian iron ore, while Guinea's giant Simandou iron ore mine is set to start up next year, he stated.

That's a high grade deposit going directly into the steel mills in China, he stated of Simandou.

My caution is, look at what's just taking place, he said.

Let's not sit here with our head in the sand thinking it's. not going to happen once again, he stated.

Indicating what happened in the nickel industry, he stated. Australia had the chance to assist develop Indonesia's. mineral wealth but did not expect China's ability to turn. low grade laterite ore into a high purity product.

The Chinese ... built the most significant nickel industry the world. has actually ever seen and ... got a whole market sector in 4. years, he said, referring to the improvement of Indonesia's. nickel market into the world's dominant provider, developed by. Chinese stainless steel giants like Tsingshan.

That flood of cheaper supply has this year hammered nickel. producers around the globe, like in New Caledonia and Australia.

Otranto said a similar situation might play out in. Australia's iron ore market which, along with the Australian. government, was underplaying the risk to iron ore.

Fortescue is increase a pilot plant to produce green iron. from Pilbara iron ore.

The world's fourth-largest iron ore miner will utilize green. electrical energy from solar farms at its Christmas Creek operations. in Western Australia to produce 1,500 tons per year of high. pureness green iron using hydrogen.

We can not miss the boat once again.

On Monday, Brazilian miner Vale, the world's. 2nd biggest iron ore manufacturer, said it had partnered with. China's Jinnan Steel Group to develop an iron ore beneficiation. plant in Oman to make high quality pellet.

(source: Reuters)