According to a report submitted by Rio Tinto to the Australian Government Productivity Commission in June, Rio Tinto invested A$28 billion to expand Pilbara's mines and infrastructure between 2009 and 2016.
This month, BHP Billiton announced a jump in profits, and Chief Executive Andrew Mackenzie said that they are more optimistic about China's efforts to promote economic reforms, which supports demand.
Due to increased imports from China, the growth rate of iron ore supply by major producers is slower than expected, and iron ore prices have been rising since mid-June.
NevPower, CEO of FortescueMetalsGroup, said last week: "We are investing in future production, placing replacement mines ahead of time and maintaining production inventories for 20 years when we need them." The company expects to spend up to $1.5 billion on Replace the Firetail business that will be discontinued.
Chris Salisbury, chief executive of Rio Tinto's iron ore business, said that between 2017 and 2018, producers could add about 100 million tons of production to the maritime market, with a primary focus on next year. According to his statement made this month, due to the rebound in machinery sales and the growth of the automotive industry, China's steel demand proved to be stronger than steel mills and traders.