An iron ore oversupply still needs to "work through the system," Fortescue Metals Group chairman Andrew Forrest warned, even after a recent rally in the price of the steel-making ingredient.
Forrest, who was speaking to CNBC on the sidelines of the Boao Forum for Asia, added that the "errors" of iron ore majors in flooding the market with supply would "plague China, Australia and the iron ore price for a good period of time."
Forrest has called for an Australian inquiry into the iron ore industry, after low-cost, high-volume production swamped the market, sending prices assessed by The Steel Index to a record low of $37 a ton in December.
The slump in iron ore prices has had a "cataclysmic effect on the Australian economy" and led to a "wanton loss of jobs," the veteran miner told CNBC at the conference on Hainan island in China. "An inquiry could've stopped oversupply a year ago."