Iron Ore Jumps as Rio Tinto Halts Production at African Mine

Iron ore futures rose more than 1% to around CNY 781 per tonne on Monday, rebounding from last week’s losses after mining giant Rio Tinto suspended operations at its massive Simandou project in Guinea following the death of a worker. The Simandou mountain range in southeastern Guinea holds one of the world’s largest high-grade iron ore reserves, estimated at about 1.5 billion tonnes. Rio had been expected to begin exports from the project in November after years of delays, though the company has not confirmed whether the latest suspension will affect that timeline. In a separate development, geologists announced a landmark discovery in Western Australia’s Pilbara region, identifying what is now considered the world’s largest iron ore deposit, valued at an estimated $6 trillion. Prices were also supported by broader risk-on sentiment after Federal Reserve Chair Jerome Powell signaled in his Jackson Hole speech that the central bank is likely to ease policy at its next meeting.