Ann: Latest Corporate Presentation, page-20

I think the theory behind over supplying the IO market with cheap imports was that the costly local suppliers would be closed down and before now, thus allowing the IO price to rise again without local competition. But as a communist economy, isn't it likely that China can just sustain their local suppliers at a loss (heavily offset by the bonus they get from cheap IO imports) and the inevitable closure of the high cost Chinese mines may never come.

The Chinese are not dills, they'll have done the calculations and can clearly sustain high cost mines at a loss for a long time. Might be time for a re-think of the strategy.