Australian billionaire Gina Rinehart warned that other countries could start producing iron ore if Australia will stop producing it. The iron ore magnate has rejected Fortescue Metals chairman Andrew Forrest’s suggestion of a possible collusion of big mining companies to put a cap on iron ore production.

At a Hong Kong conference where she accepted a lifetime achievement award, Rinehart said other companies might jump if Australia held back in producing iron ore. “If someone else doesn’t sell iron ore from Australia, the market will get it from elsewhere,” said Australia’s wealthiest woman.

Forrest has previously called for iron ore producers in Australia to limit their output in a bid to stop iron ore prices from falling even further. ABC reports that the Australian Competition and Consumer Commission said it will begin investigating the comments of Forrest.

Rinehart and her partners are set to invest $10 billion in the development of Roy Hill mine which is expected to yield 55 million tonnes of iron ore annually when it begins production later on in the year. The iron ore operations of mining giants BHP Billiton and Rio Tinto in Australia are among the lowest cost in the world.

The cost reduction and increase in production of Rio Tinto and BHP Billiton continue to lower the margins of Fortescue and other iron ore miners. Rinehart said the Australian government should do something about the high pressure of cost and productivity in the country.

She believes “onerous government regulations and delays” must be significantly reduced. Rinehart said Australia is in danger of losing revenue from iron ore if the government cannot address the issue of productivity.

Meanwhile, a leading analyst said some mining companies would need to “go broke” or combine production amid falling demand from China and a worsening global glut. Morningstar analyst Matthew Hodge believes Fortescue, Roy Hill and other high-cost mining companies may soon come to a standstill.

Iron ore is trading at around US$55 (AU$70) per tonne amid weaker demand from China, reports The Guardian. The price outlook for iron ore remains bleak as ingredients for making steel are expected to be dumped on the market in the coming years.

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