It comes after Prime Minister Tony Abbott repeatedly said yesterday that no decision on an inquiry had been made.

"Over recent days, there has been some speculation about whether a parliamentary inquiry into the iron ore sector was necessary," Hockey said in a short statement late yesterday.

"After discussing the issue with regulatory bodies and stakeholders across the resources sector, the government will not be initiating an inquiry at this time."

The Minerals Council of Australia and the Chamber of Minerals and Energy of Western Australia had both opposed an enquiry and welcomed the news.

MCA CEO Brendan Pearson said the decision would "enable Australia's iron ore sector to focus on the task of further strengthening its competitiveness in a fiercely contested global market", while CME CEO Reg Howard Smith said trading partners would have anxiously watched any inquiry.

"It is pleasing the Liberal-National Coalition government and the Labor Opposition both recognise the risk of any inquiry being interpreted by our trading partners as a regressive step with the prospect of increased Government regulation and intervention in the market place," Howard-Smith said.

But Forrest denied he wanted government intervention and said he would continue to bring the issue to the attention of Australians so a light could be shined on the industry.

He blamed lobbying by BHP Billiton and Rio Tinto for the government's decision not to hold an inquiry.

"I understand the intensity of the lobbying by the multinationals has been unprecedented. It has to be asked, what could there be to hide to unleash such intense activity?" Forrest said.

"People need to know the circumstances that led to the collapse in the price of iron ore, the loss of thousands of jobs, the shutdown of companies and the loss of billions of dollars from state and federal budgets.

"My view is the threat of oversupply, or self-harm by Australia in a market it dominates, is the biggest factor."

Forrest said he was looking for transparency, rather than government intervention.



"Those that paint me as an interventionist know the iron ore industry is an oligopoly in which each of the big players wield more market power than Saudi Arabia in oil," he said.



"The question just has to be asked, what is there to be afraid of?"

Rio has remained publicly silent on the issue, while BHP CEO Andrew Mackenzie described the idea of an inquiry as "ridiculous" earlier this week.

"We thank the government for its consultation across the industry and we welcome the decision," Mackenzie said yesterday.

Opposition leader Bill Shorten described the inquiry as a "dumb idea" and accused Abbott of picking favourites in the iron ore industry.

Independent Senator Nick Xenophon, who first suggested the inquiry, said it had been killed off by a "shock and ore" campaign.

"The fact that the PM and the Treasurer were initially supportive of an Inquiry by both houses of Parliament and have now backed away, is indicative, yet again, of the enormous and disproportionate power of the mining lobby," he said.

"The iron ore giants have now succeeded in censoring the government and the Parliament from having an inquiry into issues that are clearly in the national interest.



"You've got to ask, given this extraordinary turn of events: where does the real power lie in this country?"

Like Forrest, Xenophon said he would continue to push for an inquiry.