Big miners are now feeling the consequences of their own behaviour and should regret their vow to continue growing dividends, according to the outspoken boss of loss-making US miner Cliffs.
In his latest tirade against the iron ore growth strategies of BHP Billiton and Rio Tinto, Cliffs president Lourenco Goncalves said pressure was rising on those who devised plans to continue growing iron ore exports.
“These companies are now realising that the returns on investment that they promised to their respective boards have not been achieved and will not materialise,” he said on Thursday.
“By insisting on their imaginary ever-growing China, the iron ore majors brought iron ore prices down to a level that severely hurts themselves and their shareholders.
“These major producers of iron ore have actually become major producers of dividend yield as a direct consequence of their share prices at multi year lows.
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