While the decision doesn’t ban Fortescue from continuing to operate the mines, it paves the way for the group to sue the company for hundreds of millions of dollars in compensation claims.
Fortescue Metals Mining News
Higher commodity exports delivered a record trade surplus of $3.5 billion in December, the second monthly trade surplus Australia has recorded in nearly three years.
Smaller rival Fortescue Metals went the opposite way — it increased iron ore exports by 5% in the Sep. quarter.
Long-term, the deal could be viewed as the first step of a more disciplined approach to iron ore supply by aligning two of the world’s “big four” producers of the commodity.
BHP Billiton began evacuating workers from its Port Hedland export facilities early Friday.
The bank says prices will remain under $40 a ton for the next three years as China’s slowdown forces the sector into a long period of hibernation.
It hit $39.40 a tonne, the lowest price ever recorded by price assessor The Steel Index (TSI), which began compiling data in 2008.
Seaborne with 62% content delivered to Qingdao dropped 0.7% to $51.76 a ton, its sharpest drop in two weeks.
Despite the rosy outlook from Australia’s top iron ore producers, they are all facing staggering demand from their biggest customer — China.
Chinese import price for 62% iron content fines at the port of Qinqdao lost $5.01 or 10.01% of its value to $44.59 a tonne, the largest percentage drop on record.
The sustained losses place smaller miners back in the danger zone.
As fresh reports provided further evidence of a slowing Chinese economic and consequently increasing stock piles up at its ports.
BHP Billiton's outspoken chief executive officer believes oversupply will keep global metals prices lower for much longer.
Goldman expects the iron ore "war of attrition" will continue while prices gradually decline toward its $40 per metric ton forecast by 2017.
The stock surged over 15% in early trade, closing at A$2.40, or 10.6% up, after reports of Chinese-linked companies seeking permission to invest in the iron ore producer.
The China-Brazil deal means that in just three years Vale will be producing more than BHP Billiton and Rio Tinto combined.
Andrew Mackenzie also warned the proposed would damage the Australia’s economy and shift investment to main foreign competitor Brazil.
Inquiry comes amid claims the mining giants are driving prices down, severely damaging the country's economy .
CEO Andrew Mackenzie announced the firm would cut capital and exploration expenditure to $9 billion in the 2016 financial year from $12.6 billion in 2015.
Forrest is blaming BHP and Rio for a fall in the price of iron ore as the pair continue to ramp up production.
Prices for the steel-making material added Monday US$1.28 or 2.17% to US$59.09 a tonne, taking its gain since bottoming on April 2 to 25%.
The company has become the first big miner to delay a planned output expansion.
The miner defended his decision to boost production, which has led to sinking prices and threatens to put some competitors out of business.
The situation, industry officials said Friday, can’t continue for much longer.
The competition watchdog did not welcome chairman Andrew “Twiggy” Forrest call for rivals Rio, BHP and Vale to agree to cap production.