The CEO of iron ore production and exploration company Fortescue Metals Group Limited (ASX: FMG) has urged Australian companies to make the most of the “unprecedented investment in infrastructure” from China’s Belt and Road Initiative (BRI) according to The Australian.
The article reported the former Silk Route extends to a number of emerging economies with a combined population of 4.4 billion and opportunities for agriculture and food, education, tourism, medical services and infrastructure sectors.
Fortescue is a major supplier of iron ore to China with plans to expand sales in Asia, the report said, with many analysts saying it provides “an outlet for China’s steel production as one of the driving forces behind the BRI”.
Fortescue shares have been driven downwards in the last 12 months, back in the red today dropping 0.2% to $4.37 – down from its share price of $5.09 at this time last year.
Fortescue’s share price has suffered from tumbling iron ore prices while big gun producer BHP Billiton Limited’s (ASX: BHP) share price has held strong – up 1.8% at the time of writing to $33.77, with peer Rio Tinto Limited (ASX: RIO) shares also up 1.1% to $80.64.
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Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.