Iron Ore Price, page-1927

I cannot fathom that BHP and RIO are working in concert or independently to close Chinese mines. It just doesn't make sense. By the Chinese government's own admission. over 7000 miners per year have been dying in Chinese coal mines. Note I said "coal" mines. Figures for the rest of the mining industry are not made public. But using the data available from coal mines alone, that's an average of 20 people per day. I ask you, what would happen in most other countries if they were losing an average of 20 people per day in mining accidents? Yep, they would close them down. Did that happen in China? No.

If the death toll of 20 people per day doesn't induce mine closure, is it really rational to think that higher cost of production would induce mine closure? The Chinese government will keep mines open for as long as they need to. No cost, human or otherwise will force them to shut any mine operation when it is not in the government's interest to do so.

BHP know that. RIO know that. They've been dealing with the Chinese for decades. They know the score.