Rio Tinto Sees More Hardship for High-cost Iron Ore Miners

Mining Weekly reported that Rio Tinto plc (ASX:RIO,LSE:RIO,NYSE:RIO) sees around 75 million tonnes of new iron ore supply entering the market this year. The company thinks that influx will force high-cost iron ore miners out of the market.
As quoted in the market news:

The company’s Pilbara Mines MD, Michael Gollschewski, told delegates at the Global Iron Ore & Steel Forecast conference, in Perth, that in 2015, about 110-million tonnes of new low-cost seaborne supply entered the market, with some 130-milllion tonnes exiting the contestable market, of which 35-million tonnes came from China.
“Rio Tinto is the lowest cost producer on the curve and the demand for our high-quality product continues to be robust and attracts a premium,” Gollschewski said.
“We are continuing to focus on taking the necessary strategic and tactical actions to maintain our position. Complacency is not an option,” he added.

Click here to read the full Mining Weekly report.