Andrew Forest Live, page-23

Speaking on Tuesday, Mr Forrest said while he had heard about the rout in Chinese equities he wasn't very worried about it.

"I'm not particularly concerned about it. That is a very volatile market," the Fortescue Metals chairman told reporters in Sydney.

"I've just had the opportunity to spend time with some very senior Chinese industrialists and they're telling me the underlying economy could be stronger, but it is strong." He said it was his understanding "several sectors are as strong as they've ever been".

Mr Forrest wouldn't speculate on where iron ore prices would head in the wake of the big falls in Chinese shares, but said forecasting commodity prices was usually unreliable.

"We'll continue to ensure that Fortescue Metals Group is in the bottom 10 per cent, the bottom decile, of operating costs in the world," he said.

"No matter what happens Fortescue will stay ... extremely competitive."