Even at falling prices, iron ore brings huge profit to make companies

Australian mining companies reached the record levels of production in December 2013 and continue to invest billions of dollars to expand their production capacities.Reuters writes about this today.Iron ore continues to generate large profits, even in conditions of falling prices, and the miners of Australia - the largest manufacturer of iron ore raw materials - are expected to earn money on quantitative growth of production indicators.Production data on Rio Tinto, BHP Billiton and Fortescue Metals Group will be available within the next two weeks, but data on transshipment in ports already show a reduction in tonnage in the last quarter, as even Chinese demand has lost its former pressure.China reduced iron ore purchases by 5.6 percent to 73 million 400 thousand tons in December last year, which has become the smallest volume over the past six months.“Most of the income in large mining companies in the world comes from the trade in iron ore and therefore it makes sense for them to build strategies for saving resources in larger production,” says Eagle Mining Research analyst.