Expert forecast plunge for iron ore prices, highlights need to stop new mining tax

Iron ore prices could fall by 30 per cent or more according to world-leading providers of investment research. 

The warning, issued yesterday by Gavekal and HSBC, further underscores the volatility of the iron ore and resources sector and highlights the need for a considered, stable environment to enable the sector to operate and grow, creating jobs and opportunity along the way as well as returning income to the State.

Chamber of Minerals and Energy Chief Executive, Mr Reg Howard-Smith, said the forecast collapse made the need to stop the WA Nationals’ mining tax even more imperative.

“These forecasts by world leading experts highlight the fact it would be foolish to bank on iron ore prices staying at their current levels.”

“Unfortunately plunges in the price of iron ore is bad news for WA’s budget but it also highlights the fact that, if implemented, the mining taxes effect will be even more severe effect on investment into WA and therefore result in job losses.

“With volatility on the horizon and challenges from global competitors ever present, the WA Nationals’ iron ore tax is the single biggest economic threat to WA’s economy.”