China’s strict environmental regime means domestic iron ore mines won’t boost output to meet any supply shortfall after Vale’s dam disaster, according to the head of a major Chinese mining group.
The global iron-ore market is in the grip of a supply shock after the deadly dam burst last month in Brazil put as much as 70-million tons of annual supply at risk. As a wave of analysts boosted price forecasts, Goldman Sachs Group Inc. suggested higher prices could spur extra output from Chinese mines.