Solid iron ore prices are tipped to continue throughout early 2020, according to Australian iron ore development company Macarthur Minerals.
Company executive chairman Cameron McCall said the current iron ore price range was creating momentum globally.
The strong iron ore price continues to trade in a spot range of $US80–$US93 ($115.90-$134.72) for 62 per cent iron ore, McCall said.
Iron ore enjoyed an extraordinary run in 2019, with prices spiking to record levels to more than $US120 per tonne.
The commodity’s value dropped by 12 per cent during October 2019, returning to normal prices following this surge.
McCall believes iron ore prices will remain strong throughout 2020, setting producers up for another healthy year.
“Historically, iron ore prices tend to retract in the lead up to the Chinese New Year period when mills generally reduce production, but this does not appear to be the case this year,” he said.
Macarthur Minerals achieved all its targeted goals for the 2019 calendar year, including advancing the Lake Giles iron project by striking a life-of-mine off-take agreement with Glencore.
The iron ore company also completed infill drilling at the Moonshine Magnetite deposit, with preliminary tests on iron samples from hole LGRC_203 showing great potential for high-grade magnetite concentrate.
Macarthur Minerals’ focus remains on delivering a high-quality, low-impurity magnetite fines product (over 65 per cent iron), which will target Asian steel mills that are focussed on producing quality steel products.
The company is also looking to hit key milestones this year, including finding a third party to commercialise the Lake Giles project and appointing an engineering group to design a magnetite processing plant and complete a metallurgical test work.
“2019 was a very active year for the company, with 2020 set to be equally active,” McCall concluded.