THERE was sufficient heat in the price of iron ore and other...

THERE was sufficient heat in the price of iron ore and other minerals to sustain investment, Fortescue chief executive Andrew Forrest said.

"They're already at a sustainable re-investment of capital level, so I'm not necessarily a huge bull on commodity prices," Mr Forrest said.

"But I'm saying we have a sustainable level for re-investment - and that's great for our country."

Mr Forrest also said he expected to see greater investment by China in the local mining industry following Sinosteel's $1.36 billion takeover of West Australian iron-ore miner Midwest Corporation.

"I think you'll continue to see a growth in foreign investment in Australia, because we are resource-rich and capital-poor," he said.

Asked for his view on the financial-sector crisis, Mr Forrest said it could worsen before it got better.

"But it will definitely rebound strongly, because the fundamentals are basically unchanged.

"They were single- to double-digit growth in the developing world, and they're still single- to double-digit growth in the developing world.

"The headlines, and the banks, and the lay-offs in the financial industry, aren't going to change that in the First World."

Mr Forrest said that although things looked bleak in the financial sector, it wasn't a time to lie down and die.

"This is a period of time we're going to look back on and say: 'Didn't our wisdom, didn't our perseverance, didn't our character grow out of that tough period?' "

http://www.news.com.au/dailytelegraph/story/0,22049,24380021-5014099,00.html