Fortescue CEO Blames Rio, BHP for Poor Iron Ore Prices

Mining Australia reported that Nev Power, CEO of Fortescue Metals Group Ltd. (ASX:FMG), has blamed Rio Tinto plc (ASX:RIO,LSE:RIO,NYSE:RIO) and BHP Billiton Ltd. (ASX:BHP,LSE:BLT,NYSE:BHP) for poor iron ore prices.

As quoted in the market news:

Power said plans to continuing flooding the market has contributed to a softening Australian economy, according to The Australian.

It comes in the wake of an enormous profit crash, which saw Fortescue’s first half profit fall 81 per cent year on year.

The miner recorded a first-half profit of $US331 million, down from the $US1.7 billion it posted a year ago.

Speaking on the back of these results, Power said the continued efforts of Rio Tinto and BHP is affecting the market.

‘As we know in the iron ore business there has been plenty of talk about what projects will come on but they have been delayed and not come on as forecast, but this apprehension of excess supply is influencing the price,’ Power said.

Click here to read the full Mining Australia report.