Rio Tinto using 'predatory tactics,' Alderon's Mark Morabito says

An apparent battleis underway in the global iron ore market, as the second-largest producer of iron ore is increasing production by 25 per cent.

We're not going anywhere this project will be built. It is delayed because of the predatory tactics of RioTinto.- Alderon Chair Mark Morabito

Reuters quotes a chief executive at Rio Tinto, the majority owner of the Iron Ore Company of Canada, as wanting to keep competition from getting a stronger foothold into the iron ore market.

It's being seen by smaller companies such asAlderon Iron Ore Corp.as a move to block new mines.

Alderon chair Mark Morabito believes Rio Tinto is increasing production so it can flood the market with iron ore.

"They're attempting to drive higher cost production out of the market,put them right out of business, and attempting to keep new entrants like us from entering the market.Quite simple," Morabitosaid.

Morabito blames delays on Rio Tinto

Alderon's project has been approved for construction, but the company has had trouble securing financing for itsKamiIron Ore Mine project.

That has caused delays, which Morabito blames squarely on Rio Tinto.

"We're not going anywhere this project will be built. It is delayed because of the predatory tactics of Rio Tinto. It's very difficult to go out and raise money to build an iron ore mine when the second largest iron ore company in the world is flooding the market with supply in attempts to drive the price down," he said.

Morabito calls the construction delay "depressing," but said Alderon does have enough cash to weather the downturn.

Construction work on a third transmission line for western Labrador was suspended last week.The provincial government said that work was halted due to Alderon's inability to wrap up financing for the Kami project.