Dryblower on mining's quality war

THERE’S a first victim in every war and in the “quality war” that is buffeting the mining industry it appears that Fortescue Metals Group holds that title though as Dryblower last week considered the quality question he was sure that Fortescue will not be the last.

Dryblower on mining's quality war Dryblower on mining's quality war Dryblower on mining's quality war Dryblower on mining's quality war Dryblower on mining's quality war

More casualties will follow because the quality war launched by China is spreading to other minerals such as lithium and graphite, with coal also seeing a widening gap between prices for high-grade and low-grade material.

What started the quality war is a combination of tougher Chinese environmental controls and recognition that high-quality raw materials are cheaper when the total cost of processing, and the after-processing clean-up, is calculated.

Iron ore is best known because of the damage done to Fortescue's profitability, which is reflected in its share price - and the possibility that last week's A$500 million share buy-back was a response to sell-off in ...