[miningmx.com] – BHP Billiton CEO, Andrew Mackenzie, said an inquiry into Australia’s iron ore industry was unnecessary and would send the wrong signal to international customers about the country’s commitment to free trade.
Australia’s federal government is considering an holding an inquiry after smaller mining companies complained that BHP Billiton and Rio Tinto are deliberately driving down prices by expanding production and talking about oversupply.
“I believe that free trade is absolutely critical for the future of Australia and its place in the world,’ said Mackenzie. “It’s good for the world economy and it’s good for geo-political harmony when people feel that they can count on Australia for the supply they need to grow.’
BHP Billiton had deferred around 180 million tonnes per year (mtpa) of growth opportunities in 2012 – 110 Mtpa from the Outer Harbour Development and 70 Mtpa from two additional berths not taken up in the Port Hedland inner harbour.
“I am very confident if an inquiry goes ahead that we will see this as a well-functioning market which is in the interests of both customers and suppliers,’ he said.
