China's focus on environmental protection continues to affect miners producing low-grade iron ore that have had to offer price discounts on their products, though some believe that Chinese mills' narrowing margins could alter market dynamics.
On Monday April 9, Australia's Atlas Iron announced its acquisition by compatriot miner Mineral Resources.The acquisition follows Atlas's plans to increase the production of iron ore lumps, "which attracts a premium over fines," and to diversify its product mix by including lithium, which is riding a demand wave driven by the batteries sector, in its direct-shipping ore operations. Mineral Resources had also announced a reduction in mining revenue in the half-year ended December 2017 amid a "heavily discounted market for iron ore fines products." "The amalgamation of [Mineral Resources]'s existing Pilbara iron ore assets with those of Atlas will enable us to exploit greater synergies and economies of scale, which will drive down costs to ensure the consolidated iron ore business is sustainable in the new environment of lower global prices for low-grade iron ore," Mineral Resources said on Monday. The miner counts the Yilgarn and Iron Ore Valley projects...