iron ore miners down but not out, page-3

Love this bit, "‘‘BHP and Rio, they’re mining the highest quality, highest grade, iron ore deposits that there are. From there prospective, they could wear an iron ore price if it came back to $US60 at tonne,’’ said Mr Wendt."

Do these analyst live in a bubble, or are they willfully blind. RIO and BHP derive 90% and 50% respectively of their earnings from Iron Ore, Vale is similar. That is a huge incentive to keep things exactly the way they are. The alternative is huge profit drops! What company wants that?

It seems far more likely they are comfortable with the levels about where they are and will adjust supply to meet demand and maintain prices.