Andrew Forrest, founder and chairman of Australian iron ore miner Fortescue Metals Group, has stated that the global iron ore market is likely to face a supply deficit after the collapse of Vale’s Brumadinho dam, in an interview with Bloomberg at the Boao Forum in Hainan Province, China. He also cautioned that his company cannot guarantee to fill the deficit.
Rio Tinto Group and BHP Group made similar announcements after the Brumadinho incident, stating that they will not be able to compensate for the iron ore supply deficit by boosting their production, as indicated by Bloomberg. On the other hand, Fortescue COO Greg Lilleyman gave signals last week that the company might boost supply from a new mine being developed in Australia.
Meanwhile, Andrew Forrest also said that upstream tailings dam, the type of dam which collapsed in Brumadinho, will probably not be used in the future.
When asked about the trade tension between the US and China, he argued that the two countries will reach an agreement sooner or later.