Andrew "Twiggy" Forrest is playing a dangerous game by pushing for the federal government to intervene in the iron ore market, an industry group says.
The Fortescue Metals founder has renewed his attack on BHP Billiton and Rio Tinto for continuing to increase supply despite softer demand for the commodity, and suggests their aim is drive competitors out of the market.
Australia was being "gamed" by the multinationals and losing tax revenue, he wrote in an opinion pieces for Sydney's Daily Telegraph.
Mr Forrest urged Australians call on the federal government to consider their licences to operate "if they don't market Australian iron ore responsibly".
However, the Minerals Council of Australia chief executive Brendan Pearson said Mr Forrest shouldn't be pushing for government intervention.
"Andrew Forrest is playing a dangerous game," Mr Pearson said in a statement on Monday.
"There is no role for government in 'managing' the iron ore market."
Any such move would give "a giant free kick" to Australia's competitors, such as Brazil.
"And one thing we know from commodity markets is that once given up, market share is very difficult to win back," Mr Pearson said.
"The Forrest view that Australia can effectively set the iron ore price is simply wrong."
In March, Mr Forrest used an address at a Shanghai business dinner to call on BHP Billiton and Rio Tinto to cap production to boost the iron ore price, which is currently around $US60 a tonne.
The Australian Competition and Consumer Commission investigated whether he had breached cartel laws before dropping the matter.
Fortescue has also contributed to oversupply, ramping up production to 164 million tonnes per annum.
It's Australia's third biggest iron ore producer behind BHP Billiton and Rio Tinto.
Share
