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New Simandou supply will sink iron ore prices

Against the backdrop of weakening demand, the ramp-up in iron ore supply from the Simandou mine in Guinea is a key driver of our below-consensus view that iron ore prices will fall sharply over the coming years. But from a macroeconomic perspective, claims that Simandou will be the ‘Pilbara killer’ and pose a severe risk to Australia’s mining sector appear to be overblown.

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