Australia to risk its position in the global market for iron ore, if they do not shift to producing green iron said Fortescue CEO Dino Otranto on Tuesday as per reports on Reuters.
Australia, the largest supplier of seaborne iron ore and responsible for about half of the global supply, produces Pilbara grades from the country’s west. However, these grades are generally considered too low-quality to be used in steelmaking without coal. This could mean that with the global market turning towards decarbonization, Australian seaborne iron exporters are to be at stake, according to Otranto, who was speaking at the IMARC conference in Sydney.
“The message is, take the opportunity,” he said on the sidelines of the conference. “We have an abundance of solar and wind… so the logical next step is to get into downstream industries.”
Australia missed an opportunity to play a major role in Indonesia’s growing nickel industry. Australia had the chance to support the development of Indonesia’s nickel industry but failed to anticipate China’s rapid pace and technological advancements, which ultimately impacted Australia’s domestic industry, according to Reuters.
The surge in nickel supply has forced producers globally, especially those in New Caledonia and Australia, to bear the brunt. Otranto issued a word of caution that the situation could be replicated in Australia’s iron ore sector, where both the government and industry may underestimate the risk of an upsurge. He underlined the requirement for cooperation by the government and industry on specific grounds of decreasing power costs.