Discussing Biden's Potential China Policy

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Phead128

Senior Member
really, iron ore. it's like playing Starcraft and denying one small vespenan gas in a 4v4 map. In the bigger picture, this is a minor issue.
 

AndrewS

Colonel
Registered Member
No, simply no. Look at how China is dependent on Australia for iron ore. Metal being here and there doesn't necessarily mean it's economically viable.

People here were saying elsewhere as alternative of Australian iron ore in the wake of the diplomatic conflicts with Australia. Now another iron ore source seems to go soon, and you are still saying "elsewhere". Will that continue until the US blocks all the iron ore sources in the world one by one?

"The world's largest market" can't survive without imports, yet can't secure import sources, and the US can effectively cut its imports.

The key phrase is economically viable.

"The cost of extracting iron ore is not much more than US$16 a tonne for BHP and Rio Tinto"

In the past 7 years, the iron ore spot price has ranged from $48/tonne to $220/tonne

Given that China does have a very significant reserve of iron ore (which has about half the iron content of Australian ores), my guess is that an iron ore price of $70 is economically viable for Chinese iron ore mines to operate with.

So technically China could operate without any iron ore imports from Australia.
 

bettydice

New Member
Registered Member
really, iron ore. it's like playing Starcraft and denying one small vespenan gas in a 4v4 map. In the bigger picture, this is a minor issue.
Who says they will stop at one small vespene gas? Just moments ago, that "minor issue" as you call it didn't exist. China was already desperately trying to find alternatives for Australian iron ore and that "one small vespene gas" as you call it isn't small when you already exclude the biggest vespene gas on the map which is Australia. In the end that one small vespene gas will decide the victor.
 

Phead128

Senior Member
Who says they will stop at one small vespene gas? Just moments ago, that "minor issue" as you call it didn't exist. China was already desperately trying to find alternatives for Australian iron ore and that "one small vespene gas" as you call it isn't small when you already exclude the biggest vespene gas on the map which is Australia. In the end that one small vespene gas will decide the victor.
is iron ore really a scarce commodity? I mean, there has to be other large deposits in Africa right?
 

Overbom

Junior Member
Registered Member
The key phrase is economically viable.

"The cost of extracting iron ore is not much more than US$16 a tonne for BHP and Rio Tinto"

In the past 7 years, the iron ore spot price has ranged from $48/tonne to $220/tonne

Given that China does have a very significant reserve of iron ore (which has about half the iron content of Australian ores), my guess is that an iron ore price of $70 is economically viable for Chinese iron ore mines to operate with.

So technically China could operate without any iron ore imports from Australia.
Good post. And good point on the increase on the price of iron ore.

Is China planning to reopen/open its mines? With such high prices it is clearly sustainable for it to do it
 

bettydice

New Member
Registered Member
is iron ore really a scarce commodity? I mean, there has to be other large deposits in Africa right?
China has been already looking for other deposits away from Australia. Until when are you going to say "other", "somewhere else"? Until nowhere left? Did the US say they would let China have those large deposits in Africa? China doesn't have any physical control to secure anything in Africa. The belt and road initiative does not block bullets or bombs.
 

AssassinsMace

Lieutenant General
Iron ore is more about the infrastructure needed to get it not that it's uncommon. I imagine a lot of untapped iron sources are in underdeveloped countries which means China will be flipping the costs to access it. If you're talking about landlock countries, China would have to make deals with neighboring countries in transporting it via rivers or across land to ports that can handle it. Then you know the US will employ communism and try to sabotage by funding local opposition to complain how only the few are getting rich and/or point to environmental concerns. Now you know why the US is against China's Belt and Road. The more access to raw materials, the less control they have over it.
 

solarz

Brigadier
Who says they will stop at one small vespene gas? Just moments ago, that "minor issue" as you call it didn't exist. China was already desperately trying to find alternatives for Australian iron ore and that "one small vespene gas" as you call it isn't small when you already exclude the biggest vespene gas on the map which is Australia. In the end that one small vespene gas will decide the victor.

Making mountains out of molehills.
 

Overbom

Junior Member
Registered Member
Until when are you going to say "other", "somewhere else"? Until nowhere left?
China has iron ore reserves. The issue was that it was economically infeasibile to mine it. However as another member pointed out, recently , iron ore prices have dramatically increased thus allowing China to undertake such mining
 

DarkStar

Junior Member
Registered Member
Oh noes, the anglos did a coup in Guinea, now China has to keep buying anglo iron ore!!!
Give me a break.

look at Myanmar back during the asian pivot days; back then when the Myitsone dam was stopped by the Burmese, the Anglo propaganda was all about how it was part of China containment and yet look at the state of Myanmar now: still dependant on Chinese investment and trade and Chinese influence is such that anglo instigated civil war was prevented earlier this year.

looking at Guinea today, if the new regime wants to survive past next year, he’s gonna have to play ball with China.
 

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