Breakthrough in iron ore talks, price drop likely
The West Australian newspaper reported today that the stalemate in
iron ore talks is over. Australian producers are currently just bracing for a drop in prices. The newspaper also reported that according to industry sources,
BHP Billiton and
Rio Tinto agreed to accept a cut after one of the most drawn out negotiations in history.
Reportedly,
BHP Iron Ore and Rio's Hammersley Iron, have been enjoying strong demand; combined with the benefits of a low Australian dollar, strong
production made the business very profitable for both companies.