This is a reasonable thought process especially as 35% of MLD's work in hand (inclusive of the Downer acquisition) relate to iron ore projects. I do however doubt that China would go to that extent (they'd most likely only have Brazil as an alternative, which isn't ideal).. fortunately, the margins for companies such as BHP are terrific and I personally don't believe that the amount of ore being extracted or the amount of new mining projects beginning would suffer from any short-term price drops.
Alternatively, in terms of exposure, maybe give some deeper consideration over the beneficiaries of a lower iron ore price. What comes to mind for me are development (infrastructure, property, etc) companies who would have lower cost cost imports with steel becoming cheaper in the situation of China playing games. This is merely a suggestion & not a recommendation by any means.
Hope this gives you a bit more of an insight, but please do your own research to feel more comfortable.
MLD Price at posting:
$1.25 Sentiment: Hold Disclosure: Held
