BHP, Rio Faulted by Barnett on Iron as Citigroup Sees $30s
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The biggest iron ore miners including BHP Billiton Ltd. and Rio Tinto Group are pursuing a flawed strategy of boosting output into an oversupplied market and they should slow growth, the premier of Western Australia said.
“The signal’s going out to the market that there’s going to be ever-increasing amounts of iron ore available even at lower prices,” Colin Barnett said in an interview. “The market signal is wrong, and I believe the major companies have a flawed strategy. I don’t think it’s good business for them or their shareholders,” said Barnett, whose state includes the ore-rich Pilbara, where the bulk of Australian supply is concentrated.