[miningmx.com] – A $80 per tonne price for iron ore represented a “pain point” and would result in high cost producers of the mineral having to shut, said Tom Albanese in an interview with Bloomberg News.
“At $80, the prices are at a pain point for many higher-cost producers,’ said Albanese, who headed Rio Tinto from 2007 to 2013. “In this environment, you now have supply probably in excess of demand. It doesn’t take much to drive prices lower.’
The price of iron ore has fallen 42% this year as BHP Billiton and Rio Tinto expand production just as industrial growth in China begins to slow, said Bloomberg News.
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