As Australia’s mining sector plunged into a bear market on the rocketing price of diesel from the Iran war, brokers are telling their clients that their best bet is to stick with miners that have underground operations rather than large-scale open-cut projects.
Local diesel prices have spiked 75 per cent this year to nearly $3 a litre as the closure of the Strait of Hormuz by Iran has choked off 20 per cent of the world’s energy supply and caused China and other major diesel suppliers to cancel exports.
