Twiggy has stopped making sense (members)

The great corporate struggle of our time takes its message to the world today via the FT:

Andrew “Twiggy” Forrest, founder and chairman of Fortescue Metals Group, says the sharp fall in iron ore prices since the start of the year is causing some smaller Australian producers and overseas competitors to exit the industry.

“Because you have incredibly low operating costs with the big Australian producers we are seeing more substitution take place from China and India as competitors switch off production…The wholesale shutting down of iron ore production industries basically happens in other countries. The Pilbara [in Western Australia] has always been historically the big player…“We are less than halfway through the urbanisation process in China and people are saying they want better roads, hospitals and more comfortable houses,” he says. “At $80 or $90 a tonne, iron ore is still a great business to be in.”