er, no. India is actually a net IO importer, and has been for...

er, no.

India is actually a net IO importer, and has been for several years (http://www.mining.com/indias-rocketing-iron-ore-imports-49117/).  Chinese stockpiles are increasing, yes, but the steel production days those stockpiles represents is about the same now as they were in 2006 - 25 to 35 days.

When IOP was in the $150 - 180 range it was easy to make money (I sold a tranche of MGX shares for about $3.60 back then!)  Peeps who had no knowledge of the IO market believed that those prices were the norm - they weren't then and they aren't now.  Like any bulk commodity, IO is an expensive game to be in.  The expense is in the infrastructure - possibly the worst place to have it, in that it only facilitates production but is, in itself nonproductive (of the commodity).   

Your lecturer's view was actually more correct than not.  Picking one company to actualise that view is the mistake.  FMG, RIO, and even BHP have done very well , thank you, in spite of the latter two losing huge slabs of shareholder's funds.