Fortescue Metals Chief Executive Andrew Forrest says that iron ore prices will drop this year.
He also insisted that the fall will not be directly related to the slowdown in China’s demand. Mr. Forrest was addressing the Diggers and Dealers conference in Western Australia goldfields city of Kalgoorlie.
As per him iron ore prices would be at $US100 per dry tonne in the September quarter. This would be a relative drop from the $US130 per dry tonne in the June quarter.
He also used his presentation to attack the revised Mineral Resource Rent Tax (MRRT) of the federal government saying that it favoured the big miners. The three big miners who negotiated the new mining law with the government are BHP Billiton, Rio Tinto and Xstrata.
Criticizing the MRRT he said that if the new taxation policy was implemented as it is, Canada, New Zealand and Uzbekistan would become more appealing investment destinations. He reiterated his commitment to campaign against the proposed tax.