Australian iron ore workers strike at Port Latta plant

: Metals
23/06/26

Australian iron ore producer Grange Resources is facing industrial action at its 2.6mn t/yr Port Latta iron ore pellet and concentrate facility in Tasmania.

This comes after more than 200 unionised workers voted to go on strike.

Workers from the Australian workers union (AWU) and the communications electrical plumbing union (CEPU) voted in favour of work stoppages of up to two full shifts, with expectations of rolling stoppages across the north Tasmania site. The unions are demanding maintenance workers' pay increases to reflect the higher cost of living across Australia.

The firm undertook major maintenance work at its Port Latta concentrate and pelletising plant in January-March that cut production to 594,000t of concentrate from 668,000t in October-December 2022. The plant was first built in 1967 and requires regular maintenance, with an upgrade to its pellet furnace scheduled to be complete by 30 June.

Grange produced 2.52mn t of pellet in 2022, down from 2.6mn t in 2021, and had hoped to sustain production around 2.5mn-2.6mn t in 2023. It sold 2.43mn t of pellet in 2022, down from 2.51mn t in 2021.

Cash costs rose to A$141.75/t ($94.77/t) of concentrate in January-March from A$124.39/t in October-December 2022. The firm noted that energy costs have begun to ease into 2023, potentially offsetting the wider inflationary environment in the Australian mining sector.

Grange reported an average realised price of $227.93/t fob Port Latta in January-March, up from an average of $141.28/t through 2022. Argus last assessed the iron ore blast furnace pellet price for 63pc Fe and 3.5pc Al at $120.50/t cfr Qingdao on 20 June, down from $138/t on 21 February, but up from a low of $98.50/t on 1 November 2022.

The firm is reviewing its Southdown magnetite project, 90km northeast of Albany, based on expectations of firmer demand for high-grade iron ore over the medium-term and despite weaker prices and rising costs. It has agreed to acquire the 30pc of the project that is held by joint-venture partners Japan's Sojitz Resources and Kobe Steel, with the deal expected to be completed by end June. This will leave Grange, with the backing of its major shareholder Chinese steel producer Shagang, owning 100pc of the project. It has almost 400mn t of iron ore reserves and a Joint Ore Reserves Committee resource of around 1.2bn t.

Grange has scaled down its plans for Southdown to 5mn t/yr of high-grade magnetite from the 10mn t/yr project that was shelved in 2018, and before that in 2012.

By Jo Clarke

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25/12/19

Chile to audit SQM-Codelco lithium deal

Sao Paulo, 19 December (Argus) — Chile's comptroller general office (CGR) will audit "certain operations associated with" the SQM-Codelco agreement to form a lithium production joint venture, following complaints by some of the country's parliamentarians and indigenous communities, further delaying the deal. CGR on 18 December said its scope is limited to verifying whether government actions follow the law and to audit public spending. The agency said that it is forbidden from judging whether a policy or administrative decision is a good idea or convenient. CGR does not have the power to veto the deal, because the main legal challenges to the agreement are either in court, where the watchdog has been ordered not to comment, have already been resolved by judges, or involve policy judgments that Chilean law does not allow CGR to review. As a result, its role is limited to reviewing the agreement for potential irregularities. It can flag legal inconsistencies and delay the deal's effective date until any identified issues are rectified. CGR's audit will focus on the state-owned company Codelco's financial advisory contract with investment bank Morgan Stanley, as well as Codelco's operations, to determine whether public resources are being used appropriately. The audit will also examine claims from a congressional investigative commission regarding the transparency of the negotiation process, SQM's tax situation, and a clause that relates to Codelco's obligation to sell 100pc of extracted potassium to SQM under the partnership. The Atacama desert's brines, from which the joint venture will produce lithium, contain potassium that is precipitated and extracted alongside lithium. Additionally, CGR will review whether the companies' directors acted lawfully and examine Chile's economic development agency Corfo's approval of the contracts that underpin the partnership. These include Corfo's contracts with SQM, which allow lithium extraction in the Atacama salt flats through December 31, 2030, and its contracts with Codelco's lithium subsidiary Minera Tarar, which enables operations at the site from 2031 to 2060. Corfo's mining lease and project contracts are a key legal step in allowing Codelco to partner with a private company — SQM, in this case — to mine lithium in that area under the national lithium strategy of President Gabriel Boric, who leaves office in March. Although the SQM-Codelco agreement , which was struck in May 2024 and would extend SQM's authorization to continue extracting lithium in the Atacama salt flats from January 2031 to 31 December 2060, does not have a hard deadline to close, it is still running against the clock. If the deal is not sealed by 31 December 2025, a contract clause in the partnership agreement allows any party to void the deal if they so choose. If this deadline is not met, Chile would also reduce SQM's lithium extraction quota by 300,000 metric tonnes of lithium carbonate equivalent for the remaining period until 31 December 2030, when the company's current mining permit ends. The joint-venture also faces opposition from Chile's newly elected president Jose Antonio Kast . The far-right politician said he would honor the deal if it is sealed before he takes office, but risk of an overturn would grow if that condition is not met before he is sworn in on 11 March 2026. By Pedro Consoli Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Mexico central bank cuts target rate to 7pc

25/12/19

Mexico central bank cuts target rate to 7pc

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Viewpoint: Al industry faces structural Europe decline

25/12/19

Viewpoint: Al industry faces structural Europe decline

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Viewpoint: Indonesia’s MHP surge to hit nickel prices

25/12/19

Viewpoint: Indonesia’s MHP surge to hit nickel prices

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US inflation slows to 2.7pc in November

25/12/18

US inflation slows to 2.7pc in November

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