Sierra Leone woos miners to clean energy with $11 billion plan
Most mining firms rely on their own diesel supplies to extract iron ore, diamonds, rutile and bauxite in the resource-rich country.
Iron ore fell as investors’ attention shifted from China’s plans for stimulus and the outlook for demand to prospects for supplies, with leading miners due to deliver quarterly production reports.
Futures sank toward $106 a ton in Singapore, after gaining more than 3% over the prior two sessions as China detailed more plans to support the economy in a series of briefings. This week, Australia’s BHP Group Ltd. and Rio Tinto Group turn in their figures, as will Brazil’s Vale SA.
Iron ore has been in retreat for most of 2024 as a slowdown in China, including a property crisis, hobbles domestic demand for steel. The industry’s challenges have forced mills to cut output, while ramping up overseas sales. In recent weeks, Beijing unveiled fresh moves to buttress growth, with monetary and fiscal moves, although details of the latter remain sketchy.
At the same time, leading miners have been beefing up supplies, with their large-scale operations safeguarded by costs per ton that remain far below current spot levels. In Australia, flows via Port Hedland — the nation’s largest bulk-export terminal, — set a record for the month of September. In Brazil, shipments for that month were the second-highest on record.
Iron ore futures dropped to $106.05 at 3:03 p.m. in Singapore, after losing as much as 1.6% to $105.85. They have retreated by almost a quarter this year, making the steel-making staple one the 2024’s worst performing major commodities. In China, yuan-priced steel contracts declined.
(By Jake Lloyd-Smith)
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