Fortescue chief executive Neville Power – who took over as CEO from billionaire founder Twiggy Forrest last year – told an Australian newspaper that a lower price for iron ore is a good thing for miners and steelmakers.
Power also predicted the price of iron ore will settle at about $110 per tonne over the next few years.
The price of iron ore is down from all time highs of $180 per tonne in September to $147 per tonne currently:
"Chinese steel production growth will be lower over the next five years at about 4 or 5 per cent," Mr Power told The Australian at the Boao Forum for Asia in the Chinese province of Hainan yesterday. This represents a slowdown from growth rates of 7 to 8 per cent in recent years, but the base grows each year.
Shortly after taking over the helm Power said Fortescue could remain profitable at a price of $70 per tonne.
Fortescue exports the vast majority of its 60 million tonne ore per year to China and only began commercial production five years ago.
Click here for MINING.com's dedicated page tracking iron ore price movements.