Author: Paul Ploumis07 Oct 2014 Last updated at 06:03:58 GMT
LONDON (Scrap Monster): He continued his arguments stating that, the over production in Vale, RioTinto and BHP Billiton mines have already led to super lag in the price of iron ore, moreover, that, BHP Billito is still planning to expand its output, as the company announced on Monday, it would make investment in African iron ore to be in a paranoid state.
He also stated that the statement put together by BHP Billiton, the largest miner in the world, clearly states that the company is planning to expand their production, which has already started to get its effect on the price of iron ore and is definitely going to affect the development of Africa. Glasenberg, stated this while he was attending a panel discussion in London.
The price of iron ore has decreased about 41 percent, this year to 80 dollars per tonne, the lowest price recorded since the year 2009, a large part of this disaster weighs upon as the responsibility of the giants in the iron ore industry, as they keep on increasing and expanding their expansion as they think that they can profit even from this scale of iron ore price.
Glasenberg stated that, at the rate of current iron ore prices, large iron ore mines in Africa like, the Simandou iron ore project located in Guinea, is not even anticipated to restart their production facility, and will most probably close down permanently.
The government of Guinea, one of the poorest countries of Africa hopes that the development of the infrastructure of the mine like building railways and also ports will help in increasing the gross domestic production and also relieve the country from remote interior. But at this state of iron ore price this development seems to be impossible.