Iron ore markets head for shake-up as Singapore-linked Simandou nears production
As China’s iron ore appetite wanes, Simandou’s looming supply surge threatens to upend trade flows
[SINGAPORE] Global iron ore trade is facing a pivotal shift as Simandou, a massive iron ore mine in Guinea being developed by a Singapore conglomerate, is about to ramp up supply of the ferrous mineral.
Estimated at 2.4 billion tonnes of high-grade iron ore as one of the world’s richest untapped deposits, and projected to start production by end-2025, Simandou is a strategic project for China as it aims to diversify its suppliers from Australia and Brazil – the two countries together account for about 80 per cent of seaborne iron ore exports.
As a long-anticipated supply disruptor, the project is closely monitored by the iron ore industry, which is also betting on India to absorb demand lost in China, based on panel discussions during the Singapore International Ferrous Week last week.
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