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Category: Budget / Iron Ore

WA Treasurer welcomes iron ore price rise

Tuesday, 8 Mar 2016 10:16:29

Mike Nahan says the iron ore price bounce will not affect the May budget. (ABC News: Andrew O'Connor)

The rise in the iron ore price is unambiguously good news but will not affect the May budget bottom line, West Australian Treasurer Mike Nahan says.

Iron ore spot prices increased about 20 per cent on Monday - the biggest one-day gain on record.

Dr Nahan said it was not possible to say whether it would be a sustained rather than short-lived bounce.

"This is a very volatile commodity," he said.

"It goes up and down like a yo yo, as [it has] over three or four years. It's a spot price so it's unambiguously good bit I'm not going to rely on it yet."

But the Treasurer said it was too late to affect the budget numbers.

"Most of the iron ore has already been sold for our May budget," he said.

"It will help next year if it's sustained, but this year its impact will be minimal."

Dr Nahan also welcomed the announcement by Fortescue Metals Group [FMG] that it had entered into non-binding agreements with Brazil's Vale to pursue iron ore joint ventures.

"I'm very impressed with the actions of FMG to keep themselves alive and creating and sustaining thousands of jobs," he said.

AustraliaPlus


 

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