• Iron ore 62 per cent fines prices were unchanged this week at US$188 per tonne
  • Hard coking coal prices were up US$0.35 to $US111.13 per tonne at Queensland ports

The Chinese steel industry has pointed the finger at the concentrated ownership of Australian iron ore mines for red hot iron ore prices.

However, despite calls by China Iron and Steel Association vice president Luo Tiejun for Chinese government intervention, The Strategist reported that the calls were just hot air and that the high prices were a sign that the market is working well.

It noted that iron prices reflected the inefficiency of China’s own iron ore mines rather than any alleged monopolistic behaviour by the major Australian mining companies.

Not that Australia and the iron ore companies that call it home are complaining.

Iron ore exports from Australia are expected to surpass the $150 billion peak reached in the first half of 2020 while BHP and Rio, who both have extremely low operating costs, are likely to enjoy significant profits.

Speaking of the red hot iron ore price, it seems that the powers that be are taking things a little too literally with yet another fire breaking out, this time at Citic Pacific’s Sino Iron operations in the Pilbara.

While there were no reports of injury or indications about the amount of damage, the fire did stop production at the magnetite operation.

It’s been a red letter year for iron ore-adjacent fires so far, with Vale’s main iron ore export terminal at Ponta da Madeira in northeast Brazil in January and Rio Tinto’s Canadian berth last month.
 

Here’s how ASX-listed iron ore stocks are performing:

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CODE COMPANY 1 WEEK RETURN % 1 MONTH RETURN % 6 MONTH RETURN % 1 YEAR RETURN % SHARE PRICE MARKET CAP
DRE Drednought Resources 28 21 10 360 0.023 $ 56,131,824.48
VMS Venture Minerals 25 75 228 708 0.105 $ 125,779,235.20
ACS Accent Resources NL 19 -58 280 660 0.038 $ 17,709,036.75
SRK Strike Resources 14 40 198 600 0.28 $ 67,961,923.70
MAG Magmatic Resrce Ltd 12 54 -5 -35 0.185 $ 38,033,780.23
TI1 Tombador Iron 11 33 229 337 0.092 $ 93,596,601.05
RHI Red Hill Iron 8 71 233 268 0.7 $ 41,914,704.30
GEN Genmin 5 13 0.295 $ 82,401,693.04
MIN Mineral Resources. 4 23 89 188 47.42 $ 8,983,832,743.20
AKO Akora Resources 3 -33 0.34 $ 17,416,704.00
JMS Jupiter Mines. 2 4 25 25 0.34 $ 666,056,951.22
MGX Mount Gibson Iron 0 12 34 50 0.9 $ 1,067,325,460.20
CZR CZR Resources Ltd 0 20 -8 33 0.012 $ 34,236,226.73
RLC Reedy Lagoon Corp. 0 -5 110 600 0.021 $ 9,870,549.49
SHH Shree Minerals Ltd 0 23 33 433 0.016 $ 16,163,790.27
LCY Legacy Iron Ore 0 13 143 750 0.017 $ 108,880,554.79
BHP BHP Group Limited 0 5 38 60 47.82 $ 138,543,391,059.82
RIO Rio Tinto Limited 0 9 29 48 121.96 $ 44,579,355,139.26
FMG Fortescue Metals Grp -1 11 29 104 22.38 $ 69,215,131,356.64
MGT Magnetite Mines -2 25 567 6439 0.06 $ 167,103,582.27
CIA Champion Iron Ltd -2 21 80 260 6.84 $ 3,453,076,238.48
MGU Magnum Mining & Exp -3 48 223 288 0.155 $ 65,917,699.71
FMS Flinders Mines Ltd -4 -13 32 88 1.13 $ 189,954,649.13
FEX Fenix Resources Ltd -4 49 159 629 0.35 $ 156,432,913.20
GRR Grange Resources. -5 18 138 148 0.57 $ 648,109,670.88
GWR GWR Group Ltd -15 12 87 360 0.29 $ 86,294,136.26
IRD Iron Road Ltd -16 -2 83 449 0.245 $ 184,350,744.24
ADY Admiralty Resources. -20 -13 82 300 0.02 $ 23,182,693.98
CAP Carpentaria Resource -23 22 22 110 0.055 $ 16,552,447.74
BCK Brockman Mining Ltd -24 82 140 200 0.06 $ 556,753,927.86

Dreadnought Resources (ASX:DRE) +28%

Drilling has been completed at 19 targets within the Metzke’s and Lawrence’s Corridors, part of the Illaara gold-copper-iron ore project, intersecting a range of encouraging alteration styles at each target tested.

The program was designed to test for extensions to mineralisation at Metzke’s Find, Longmore’s Find and Black Oak and results are expected throughout this month.

Dreadnought is now preparing for field programs at Tarraji-Yampi and Mangaroon.

Tombador Iron (ASX:Ti1) +11%

The company has secured a mining concession for its Tombador Project in Sento Se, Brazil, taking it another step towards starting production from the high-grade hematite play this quarter.

Production can begin once the company receives the environmental operating licence.

Tombador has a 10Mt resource and could have annual production of up to 3.3Mt.
 

Here’s how ASX-listed coal stocks are performing:

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CODE COMPANY 1 WEEK CHANGE % 1 MONTH CHANGE % 6 MONTH CHANGE % 1 YEAR CHANGE % PRICE MARKET CAP
AHQ Allegiance Coal Ltd 10 47 121 77 0.63 $ 131,710,345.00
WHC Whitehaven Coal 7 -23 23 -23 1.32 $ 1,352,763,943.92
CKA Cokal Ltd 6 -4 5 40 0.066 $ 61,022,432.66
PDZ Prairie Mining Ltd 5 7 7 76 0.22 $ 50,238,119.58
PAK Pacific American Hld 5 0 5 130 0.023 $ 7,327,452.70
SMR Stanmore Coal Ltd 4 -6 -4 -30 0.7 $ 187,932,407.00
TER Terracom Ltd 2 18 -35 -22 0.094 $ 70,839,117.22
BRL Bathurst Res Ltd. 1 -13 -9 -37 0.355 $ 61,542,584.28
NHC New Hope Corporation 0 -15 9 -18 1.18 $ 982,181,356.76
MCM Mc Mining Ltd 0 8 40 -18 0.14 $ 21,618,737.70
TIG Tigers Realm Coal 0 7 -23 55 0.008 $ 104,533,618.94
YAL Yancoal Aust Ltd -2 -7 8 -5 2.06 $ 2,680,492,057.11
NCZ New Century Resource -3 19 16 16 0.185 $ 223,836,688.51
AKM Aspire Mining Ltd -5 -12 17 4 0.084 $ 42,641,506.74
BCB Bowen Coal Limited -5 -6 19 24 0.062 $ 59,579,660.24
ATU Atrum Coal Ltd -5 2 -81 -76 0.056 $ 32,588,172.57
CRN Coronado Global Res -6 -34 -23 -46 0.595 $ 823,407,945.50
LNY Laneway Res Ltd -8 10 -21 38 0.0055 $ 20,762,862.63
NAE New Age Exploration -8 57 83 633 0.022 $ 26,829,944.02
JAL Jameson Resources -17 1 -17 -26 0.096 $ 29,119,861.44
MR1 Montem Resources -19 -32 -30 77 0.105 $ 20,626,400.66

Cokal Ltd (ASX:CKA) +6%

The company is edging closer towards starting metallurgical coal production from its Bumi Barito Mineral (BBM) project in Kalimantan, Indonesia, with progress being made on repairs to the access road.

Cokal noted the first 5km of work was completed ahead of schedule in the first week and that activity in the second week has consolidated this advance.

BBM covers 14,980 hectares with open cut mineable areas controlled by three major fault systems. It has a current resource of 266.6Mt with a coal reserve of 20.2Mt.

All regulatory approvals including environmental approval for mining at a rate of 6Mt per annum are already in place.