Fairfax Media yesterday reported comments made by Standard Bank analyst Melinda Moore in a daily newsletter.

"FMG is rumoured to be (FINALLY) considering reducing its output back to 120 million tonnes from as high as 180Mt annualised in some shipment months this year, primarily by closing its higher cost Cloudbreak (40Mtpa) mine, focusing on margins rather than volumes - as all miners should now be doing!" she reportedly wrote.

"This could reduce the miner's breakeven price on a China CFR basis from $US71/t to below $65/t (savings on costs/moisture) and also assist in significantly reducing market supplies."

But FMG hit back at the claim on its Twitter account late yesterday.

"Fortescue is not closing Cloudbreak," the company said.

"This report is based on speculation from an analyst with no connection to Fortescue."

Cloudbreak employs more than 2500 workers and contractors.

The speculation came as the iron ore price hit a five-year low on Tuesday night of $69.48/t.

FMG chairman Andrew Forrest said earlier this month that forecasts of an iron ore price below $60/t were of no concern.

"All the long-term analysts suffer short-term panic, but Fortescue doesn't do that," he said on November 12.

"We're in a comfortable position, we're returning sound value for shareholders, and we've got plans B, C and D at low iron ore prices.

"You never have a brave plan A without a bulletproof plan B and that's an ethos of Fortescue."

FMG shares closed 2.6% higher at $A2.86 yesterday.