Cyclone Narelle Threatening Australian Mining Area

Written by: Sandy Williams

Iron ore buyers have been watching with concern the path of Cyclone Narelle as it approaches the western shore of Australia. The west and northwest region contains 93 percent of Australia’s iron ore mines. In past years cyclones and flooding have disrupted mine operations for coal and iron ore sending steel prices soaring. Most are open cut mining operations that can be significantly affected by the weather, with impacts from wind, dust, and flooding. Recent weather related mine damage was recorded in 2007, 2008, 2010 and 2011, spiking the price of iron ore each time.