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BEIJING — Iron ore futures rose sharply this week after Rio Tinto (NYSE:RIO) suspended operations at its SimFer mine in Guinea following the death of a contract worker. The incident prompted a halt in activity at one of the world’s largest untapped iron ore deposits, raising concerns over supply disruptions.
On China’s Dalian Commodity Exchange, the most-traded January iron ore contract closed 2.27% higher at 787 yuan ($110.06) per metric tonne, its highest level since August 14. Benchmark prices on the Singapore Exchange also climbed, with September contracts rising 2.69% to $103.30 per tonne.
Rio Tinto confirmed the suspension and stated that support is being provided to affected personnel. The company, which operates the SimFer joint venture alongside China’s Chalco Iron Ore Holdings and the Guinean government, had anticipated its first shipment from the site in November.
The fatality marks the seventh death across Rio Tinto’s global operations in two years, underscoring ongoing safety challenges. An investigation is underway, and CEO Simon Trott is expected to visit the site.
Despite production restrictions in China’s steelmaking hub of Tangshan, demand for iron ore remains firm. Market sentiment was further buoyed by policy signals from Shanghai aimed at easing home-buying restrictions, which could support steel demand.
Excerpts sourced from reporting by MINING.COM and Reuters.
