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Iron Ore’s $250 Billion Glut Pressures Rio to Vale: Commodities

The world’s biggest iron-ore producers are planning $250 billion of new mines, threatening to deepen a price slump for the commodity already forecast to drop for at least the next three years.

Mining companies are facing growing investor pressure to defer or cancel projects to stem price declines. Rio Tinto Group, 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.