AusRAIL, Market Sectors

Miners, government sweat as iron ore slips below US$100/t

<span class="" id="parent-fieldname-description"> A continued decline in the price of iron ore – punctuated last Tuesday when it dipped below US$100/tonne – spells bad news for Australian miners, and the economy as a whole. </span> <p>In fact, in the week following the slimmest budget in almost 20 years – and by far the most publicly maligned budget in a long time – a declining iron ore price might actually be worse news for the government.</p><div>Iron ore is Australia’s biggest export commodity by both volume and value, and tax paid by iron ore miners is a huge source of income for the government. A decline in price is therefore not only bad news for miners’ revenue, but for the government’s revenue as well.