The world's largest low-grade iron ore producer has confirmed that it will bid for two blocks at what is considered the world's largest untapped high-grade ore resource, a move that reiterates what the industry has been saying over the past few years - that demand for green iron ore or high-grade ore is a structural change in the making.
"Following the release of information at a public meeting held in Guinea last week, Fortescue confirms that it is participating in the tender for Simandou Blocks 1 and 2. Details of Fortescue's bid are confidential and there is no guarantee that any bid submitted will be successful," Elizabeth Gaines, Fortescue Metals Group (FMG) chief executive officer, said this month.The Simandou project, which has been mired in several issues over the past decade, boasts resources of around 2 billion tonnes of iron ore and has the potential to make Guinea the largest iron ore exporter in the world, a title currently held by Australia, where FMG's operations are located. The bid, however, also reiterates that demand for high-grade iron ore will form an integral part of the global steel industry in the coming years while environmental concerns for both producers of steel and producers of raw materials take center stage.This is...