Australian miners jump as fresh uncertainty hits Brazil miner

“This mine produces about 30 million tonnes per annum, which is about roughly 1.5 per cent of the seaborne market,” he said.


Because of the mine’s significant size, the impact of lost production from the mine could affect iron ore prices relatively quickly, he said.

Mr Dhar said Vale had also lowered its guidance for sales of iron ore and pellets in 2019. Last month Vale said its guidance was in the middle of the range of 307-332 million tonnes for the year.

But its latest statement adjusted this, saying it was between the bottom and the middle of the range.

“If Brazil is seeing less production it favours Australia significantly. So in terms of the impact, it’s clearly positive,” Mr Dhar said.

Investors backed Australian iron ore miners following the court decision, with shares in BHP up 1.4 per cent to $37.30, adding almost $1.5 billion to the miner’s market capitalisation.

Rio shares jumped 2.3 per cent to $96.05, adding $775 million to its global miner’s market cap. While shares in Fortescue Metals Group jumped 6.3 per cent to $7.60, adding a $1.4 billion to the pureplay iron ore miner’s market cap.

Meanwhile, Rio revealed on Tuesday it had signed an agreement with Caterpillar to provide it with heavy machinery for the Koodaideri iron ore mine in WA’s Pilbara area.

Caterpillar, with the support of Australian-based WesTrac, will supply 20 huge autonomous trucks to Rio and four autonomous blast drills, extending the company’s automation push.


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