China has declared war on Pollution. As per recent reports:
China will cancel about a third of its iron ore mining licenses, mostly belonging to small polluting mines as part of Beijing’s efforts to improve air quality
Now this is not new. The number of iron ore mines in China have been declining for some time now and this trend is gaining momentum. China is one of the world’s largest producer of iron ore but it seems like this trend might not sustain. China’s raw iron ore is mostly low grade, with 30% iron content, compared with more than 60 percent iron content that comes from Brazil VALE. Now, Chinese Govt is putting in more stringent environmental norms causing Steelmakers to shift to higher grade reserve
And it looks like going ahead - China will prefer to import high iron ore content from Brazil in huge quantities than produce low grade iron ore from polluting mines. It means more imports from Brazil. No wonder Brazilian producer VALE is trading near highs.
Iron ore imports by China surged above 100 million metric tons to a record in September 2017
The Pollution concerns now in Brazil.
Brazil is destroying Amazon forest reserves to mine this high grade iron ore to ship to China.
This voracious mining is not just very predatory for the ecosystem, it is economically predatory to the nation. In the long run, it is disastrous. China wants to clean up 20 years of pollution over there, yet impacting things more here.
~Frederico Martins, head, Carajás National Forest
Losing rainforest in Brazil to fight pollution in China is now attracting attention of lots of people.