Iron ore: More to worry about than price

Rio Tinto, Fortescue and Mount Gibson are dealing with significant non-market events.

Summary: Mount Gibson has cut production after a wall in one of its mines started to collapse. Rio Tinto controls a business in Canada that has been affected by a train derailment, raising questions about whether Rio’s most marginal mines can stay profitable. Fortescue Metals Group is considering whether to diversify or remain a single commodity specialist. Meanwhile, a collapse in the iron ore price means miners are working hard to cut costs.

Key take-out: Costs and prices are just part of the iron ore situation. Other factors such as mine-site accidents and management disputes also affect mining companies.

Key beneficiaries: General investors. Category: Iron ore.


{{ twilioFailed ? 'SMS Code Failed to Send…' : 'SMS Code Sent…' }}

Hi {{ user.FirstName }}

Looks like you've already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to activate your membership

We cannot send you a code via SMS to {{user.DayPhone}}

If you didn't receive SMS code please

SMS code cannot be sent due to: {{ twilioStatus }}

Please select one of the options below:

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device

Verify your mobile number to unlock a FREE trial

Please sign up for full access

Updating information

Please wait ...

  • Mastercard
  • Visa

The email address you entered is registered with InvestSMART.

Please login or select "Don't know password"

Please untick this box when using a public or shared device

Register as a new member

(using a different email)

Related Articles