By David Lewis(http://www.abc.net.au/news/business/)A resources...

By David Lewis
(http://www.abc.net.au/news/business/)



A resources analyst says Japan's reconstruction effort will increase demand for iron ore from Australia.

Gavin Wendt from Mine Life says the devastating earthquake and tsunamis will cause some initial nervousness in the market.

However, he says iron ore producers, including Xstrata in north-west Queensland, will see long-term benefits.

"With a huge reconstruction effort to take place in significant parts of Japan, that obviously has to be positive for iron ore demand," he said.

"You would assume, as a result of that, that that's very positive for iron ore prices over the coming years."