Iron Ore’s $250B New Mines Puts Pressure on Rio, Vale

Bloomberg reported that the world’s largest iron ore producers are planning to invest $250 billion on new mines, which threatens to push the price slump deeper as experts believe that the commodity will drop in the next 3 years.

As quoted in the market news:

Mining companies are facing growing investor pressure to defer or cancel projects to stem price declines. Rio Tinto Group (RIO), the second-largest iron ore exporter, will decide on one of the biggest industry expansions in Western Australia in the second half. A decision to delay would boost its earnings in 2015 by $3.7 billion, according to Liberum Capital Ltd.

Click here to read the full Bloomberg report.