Forrest has another go at BHP and Rio for iron ore oversupply

Andrew “Twiggy” Forrest has again hit out at the iron ore strategies of Rio Tinto and BHP Billiton, claiming a falling iron ore price will affect Australian living standards.

Speaking to broadcaster Alan Jones yesterday, FMG’s founder and chairman said the iron price would continue to tank unless major miners stopped oversupplying the market.

“If we don’t get responsibility coming into the future actions and the current statements of the very multinational companies that derive their fortunes from our own land then the iron ore price will continue to fall, the budget will be thrown into jeopardy, the deficit will grow and our standard of living will fall,’’ Forrest told Jones.

“And it’s all completely avoidable. None of this had to happen.’’

This is not the first time Forrest has called on the miners to check their production.

In late March he called on BHP and Rio to start acting like grown-ups and place a cap on production in order to usher in a price rise.

The comments caught the attention of the ACCC and were slammed by the Treasurer Joe Hockey.

But Forrest remains unrepentant and claims signals from the majors that they will continue to produce iron ore at a record pace was driving sentiment down.

The comments came on the same day the price of iron ore dropped by 4 per cent to $US56.90 a tonne.

The price fall came after a nine-day surge, however most analysts had predicted the price rise wouldn’t last because growth in China has slowed.

Yesterday FMG implemented roster changes at its Pilbara mine sites, a move that could lead to redundancies.

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