Australian Bureau of Agriculture and Resource
Economics (ABARE) expect
iron ore prices to increase around 12 percent in the fiscal year starting this April. ABARE indicated that prices are expected to remain high until 2008 as the cost of adding new
production and a shortage of trucks and labor limits mine expansions.
Iron ore earnings are expected to increase from A$14.28 billion in the current fiscal year to A$18.02 billion in the fiscal year ending June 30, 2007.