Rio Tinto Group and BHP Billiton Ltd., two of the world’s biggest iron ore producers, are benefiting as falling iron ore prices pressure smaller rivals in China to shut down.
Rio Tinto Group, the world’s second- largest mining company, is seeking to work more with smaller competitors on exploration as the industry cuts spending and sells assets to bolster earnings.
China’s reduced craving for raw materials is driving mining companies to go to extreme measures to cut costs amid steadily falling prices.
When Rio Tinto Group decided it had to part with Chief Executive Officer Tom Albanese, the second- largest mining company turned to Sam Walsh, whose iron ore unit has generated almost $40 billion in profit in seven years.
"A year ago the market was talking about returns, returns, returns and stop investing."
- Sam Walsh on Jul 23, 2014