Advanced Search

Share Coverage



Category: Mining Industry / Iron Ore

Mining industry recovery on way, but over-investment still a risk, FMG chairman says

Wednesday, 8 Jun 2016 14:52:54 | Kathryn Diss

Andrew Forrest speaks at the National Press Club. (AAP)

Fortescue Metals Group chairman Andrew Forrest says he does not believe the mining industry is dying or in a 'negative transition', but he warned the sector must learn from its mistakes of over-investment.

Addressing the mining sector at the Association of Mining and Exploration Companies (AMEC) convention in Perth, Mr Forrest said he believed a recovery was on the way with signs of economic growth emerging.

"I've just come back from a major trip through Europe, North America and Asia and I'm not seeing industries looking crippled, I'm seeing industries looking strong," Mr Forrest told reporters on the sidelines of the conference.

"I certainly see there's a cohesive urgency in a requirement for America and China, Japan and Australia to co-exist and to drive each other's economies and I think our leaders will see the sense in that.

"I think you're seeing the very early stages of the next wave of global economic growth."

But Mr Forrest played down suggestions mining construction would return to levels seen during the boom because the industry had already over-invested in infrastructure.

"I think we're pretty well over-invested, I think we can handle any increase in demand comfortably from the capital which we've already invested," he said.

"I don't think we need to go reaching for our shareholders' cheque book, we just have to continue to manage well and lead even better."

Mr Forrest also referred back to last year's war of words over iron ore supply, when he attacked the growth plans of Vale, BHP Billiton and Rio Tinto and accused them of deliberately driving down the iron ore price.

"Driving for over-supply, driving for market share is what has collapsed resource markets in the past, it's done it again recently," he said.

"I'm sure now we've got enough youthful leaders coming through to say I've seen that history, I'm still young enough to make a difference and I won't make the same mistake again."

AustraliaPlus


 

Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.

沪公网安备 31010602000204号

Email this to your friend