[miningmx.com] – THE iron ore collapse has pushed producers to the brink of survival, said Bloomberg News which cited the comments of Sam Walsh, CEO of Rio Tinto, the world’s second-biggest mining company.
“There are a lot of producers that we believed would leave the market that are hanging on by their fingernails,’ said Walsh in an interview with Bloomberg Television in London. “They are burning up cash reserves of their shareholders.”
Iron ore’s 45% retreat this year has left the industry on the precipice of an unprecedented shake-out as higher-cost suppliers are slowly forced to exit the market, said Bloomberg News.
Prices are continuing to fall as the largest companies, including Vale SA, Rio Tinto and BHP Billiton, expand production and grab market share.
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