According to Gina Rinehart, chief of Hancock Prospecting, and a magnate of West Australian mining, iron ore contracts in 2009 may drop by 50 percent because of the economic slowdown in China, the biggest raw material consumer in the world.

The global economic recession has resulted in decreased demand; thus, Chinese steel enterprises may meet the first depreciation on iron ore contracts in the last 7 years. Meanwhile the second biggest iron ore supplier, Rio Tinto is also negotiating with Baosteel in regard to the iron ore price for this month. Source:Yieh.com

Hancock Prospecting is the work partner of Rio Tinto on the West Australia Hope Downs Iron Ore Project.