From Bloomberg:
“Prices below $50 are not comfortable to anyone, including the majors,” Chief Executive Officer Lourenco Goncalves said in a phone interview from the company’s headquarters in Cleveland, Ohio on Tuesday. “The cost-cutting is not even close to offset their loss in revenues. My entire point: the loss in revenue, totally avoidable. Self-imposed. Self-inflicted.”
…“In their imaginary world, 60 million tons of capacity will go offline this year, then another 125 million tons of capacity will go out of commission next year,” Goncalves said. “That’s not the case. Everyone is driving down costs, everyone is trying to continue to cope. You’re not seeing any meaningful number of tons going offline.”
BHP Billiton Ltd. spokeswoman Emily Perry said on Wednesday the company wouldn’t respond to Goncalves’s remarks. Media representatives for Rio Tinto Group didn’t immediately respond to two e-mails and two phone calls seeking comment.
This is, of course, rubbish. Mr Goncalves is rightly defending his 11 million tonnes of WA iron ore that is about about to rack up losses. Good entertainment, though!
