Fall in iron ore prices puts Australia's mining industry in trouble

If iron ore prices fall, Australians could face higher taxes and cuts to services as demand for our mining resources falls. The commodities boom and trade have helped Australia avoid the worst of several global economic downturns, with $136 billion worth of iron ore sales last year alone. In July, Rio Tinto celebrated shipping four billion tonnes of iron ore from Western Australia's Pilbara to China. But as Beijing's economy worsens, leading steelmaker Baowu finally admitted it will not receive a significant stimulus package from Xi Jinping's Chinese Communist Party. Finance Minister Jim Chalmers has warned that Albania's federal government will have to make some difficult decisions as a result, while the RBA is also keeping a close eye on developments. But it's not just China's economy. Experts say the entire steel industry is changing, with Australia now facing growing international competition from Brazil, the Middle East and Africa, which are offering greener alternatives to iron ore with environmental benefits. It's all part of the global economic transformation from fossil fuels like ours to carbon-free economies. Steel producers around the world are looking for new ways to process iron ore. But new technologies like arc furnaces require either the highest quality iron ore or recycled metals.