The terrible Brazilian mining tragedy that has iron ore prices running wild is something of a Black Swan event for Australia. Iron ore prices are volumes for the year ahead will now be higher than previously thought so we must ask if this changes the path for an economy clearly on the slide. Goldman’s assessment is useful:
The US investment bank raised its three, six and 12-month iron ore price targets to $80, $70 and $65 a tonne versus previous forecasts of $70, $60 and $60 a tonne.
It notes that Vale plans to offset the 40 million tonnes from decommissioning tailings dams after the Brumadinho disaster by increasing production elsewhere.
