Drop production by 10% stupid., page-3

Dropping production would be tantamount to admitting that their massive expansion plans have backfired, or were too aggressive.

Many of the junior IO plays were only ever speculative/opportunistic anyway (low grade, high cost, etc.) and unlikely to be attractive in the foreseeable future.

The future of reasonably profitable large increases in production by BHPB, Rio/Hancock, Vale, FMG, et.al. is only realisable if much more of the high cost domestic Chinese ore falls away.

Maybe China Inc. is happy to pay high domestic cost if it is a lever to secure low imported cost; (high + low) / 2 = average!

I suggest the real longer term threat is if China manages to secure lower cost ore by development of large new projects in Africa say.

... only my musings.