China dashes SA iron exporters’ hopes

LEONARD NEILL CHINA HAS delivered something of a body blow to South Africa’s plan for a huge increase in iron ore exports. Chinese officials have decided to end the export tax rebate policies that encouraged the export of billet and steel which it manufactures, and which is dependent on the import of iron ore. As a result they see a decrease in import volumes. Transnet is currently giving priority to funding for rail traffic from the northern Cape mines, which will increase capacity for the export of iron ore through both Saldanha and Port Elizabeth. But China wants to curtail the importation by its steel manufacturers whose target is the export market. The country’s leaders contend that there is sufficient local production of the raw material to meet its needs.