Rio Tinto Group said it’s prepared to cut iron ore output if that’ll improve cashflow, signaling a major step back from the industry’s decade-long strategy to keep pumping ever-expanding supply onto the global market.
The world’s second-biggest iron ore exporter is driven by margins and not by market share, Chief Executive Officer Jean-Sebastien Jacques told investors during a seminar in Sydney. The company wants to make sure “we maximize free cash flow coming” from its Pilbara iron ore system and “if it means reducing the volume we will do it,” he said.
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