Rio Tinto said falling iron ore prices would lead to the elimination of 125 million tonnes of iron ore supply among higher cost producers in 2014.

The world's second-biggest iron ore miner also said it intends to sell 85 per cent of its 2014 iron ore output under term contracts and the rest on the spot market, according to a statement released on the Australian Securities Exchange.

The iron ore price ended September with a loss of almost 12 per cent, its steepest monthly fal ..