Rio Tinto’s Simandou mine could blow $10b hole in the federal budget
Rio Tinto’s Simandou mine in West Africa, which is expected to add 60 million tonnes of iron ore supply and weigh on global prices of Australia’s key export, could reduce government revenue by $10.5 billion as mining tax income falls. The $35 billion development of the Simandou mountain range in Guinea is considered a threat to the supremacy of Western Australia’s Pilbara region in the global production of iron ore. It is also likely to make Treasurer Jim Chalmers’ job of balancing the budget more difficult. The development of a $35 billion new mine in West Africa will have significant impacts on the iron ore price, and as a result, the Australian government budget. Bryan Cook “Simandou has long been considered the dagger to the heart of Australia’s iron ore exceptionalism,” independent economist and budget expert Chris Richardson said. “If nothing else, it would bring prices down and take away some of the super profits.” Simandou is expected to operate at full capacity, produci...
