Fortescue Metals CEO on Vale Mining Accident Impact, China Proeuction

Elizabeth Gaines, CEO of Fortescue Metals, discusses the impact of the Brazilian tailings accident on the iron ore market, highlighting supply disruptions and potential responses from Chinese domestic mines. She emphasizes the continued strong demand for iron ore driven by China's infrastructure investments and the company's diversification efforts in global sales. The introduction of the West Pilbara fines product is expected to meet high demand across markets. Gaines also addresses industry cost implications and safety standards in response to the Valet disaster.

What was the primary cause of the recent volatility in the iron ore market?

• A new mining policy in Australia

• The tailings accident in Brazil

• Increased demand from Europe

• Technological advancements in mining

How long is the disruption in iron ore supply expected to last?

• 1-2 months

• 3-4 months

• 7-8 months

• 5-6 months

What is driving the strong demand for iron ore in China?

• Investment in infrastructure

• Increased exports to Europe

• Decreased steel production

• Reduction in mining costs

What percentage of global steel is produced by China?

• 60%

• 35%

• 25%

• 50%

Which new market has Fortescue Metals recently entered?

• Europe

• South America

• Middle East

• Africa

What is the West Pilbara fines product intended to achieve?

• Increase domestic sales

• Enhance mining safety

• Win new customers

• Reduce production costs

How might the tailings disaster affect the industry cost curve?

• By enhancing technological innovation

• By reducing global demand

• By increasing safety costs

• By lowering production rates