bhp billiton and fortescue cost curves skew iron ore

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  • Global iron ore cost summary Report | Wood Mackenzie

    Dec 22, 2020· Global iron ore cost summary. ... BHP Billiton Fortescue Operating costs Delivered costs Capital costs Tables and charts. This report includes 24 images and tables including: 2020 Global total cash cost curve (US$/tonne) FOB / ex mine; Average total cash cost 2009-2030 (US$/tonne, nominal to 2020 and real thereafter) ...

  • Discounts for lower-grade iron ore here to stay, says BHP ...

    Jul 22, 2014· ''Fortescue expects the iron ore market to rebalance in the short term as higher cost production leaves the market, flattening the global cost curve

  • Broker sees top returns for iron ore miners BHP and Rio

    Aug 11, 2020· The ASXs biggest miner BHP Group Ltd is up almost 60% since 16 March. Rio Tinto Limited hasnt disappointed with a 33% rise over the same period. And Fortescue

  • Iron Ore | Today's Spot Price & Charts - Market Index

    Western Australia holds just over 90% of Australias identified iron ore resources and has a reputation for producing consistently high concentrations of around 60%. Rio Tinto (RIO), BHP Billiton (BHP) and Fortescue Metals Group (FMG) account for ~90% of Australias iron ore production (2014).

  • A Golden Age for Brazillian Iron Ore? Eggactly.

    Jun 01, 2014· The cost curve has shifted down structurally. USD 100 per tonne will now be the new USD 120-130 per tonne. Grade discounts are now the focus, rather than the headline benchmark price. The potential risk, particularly for low-grade iron ore producers, is how large these discounts can grow.

  • The Mining Investor's Handbook - Part 3 - Iron Ore

    In 2014, iron ore contributed 50% of earnings before interest and tax (EBIT) to BHP, nearly 70% for Rio Tinto, whilst Fortescue is a pure play and generates of its earnings from iron ore.

  • How Standard Bank Explains Divergence in Iron Ore Cost Curves

    Feb 28, 2013· FMGs cost curve assumes 300 million tons of high-cost Chinese domestic iron ore concentrate sits at the top of the seaborne cost curve, in the range of

  • Investors snap up miners as iron ore keeps falling ...

    On Wednesday, resource giants BHP Billiton and Rio Tinto were trading 0.2 per cent and 1.2 per cent higher respectively at lunch time while Fortescue Metals was up 3.7 per cent. At these prices, we think the miners are looking demonstrably cheap, said Garth Rossler, chief investment officer at Maple-Brown Abbott, who has been topping up on mining stocks for some time.

  • Here are the breakeven rates for major iron ore miners ...

    Jan 08, 2018· Widening Fe-discounts have shifted low-grade producers up the curve, compared to early 2016, while some high-grade marginal producers including Chile, Peru, Canada, Iran have improved ...

  • How are BHP, Rio Tinto and Fortescue Positioned For The ...

    Iron ore prices (Credit: Business Insider) Iron ore producers are down slightly less than the broader market, with BHP Billiton ( ASX: BHP) down 13%, Rio Tinto down 17% and Fortescue Metals down 16%. This is because investors and management teams alike foresaw an iron ore price correction and were thus prepared for it.

  • What Impacts Iron Ore Miners Break-Even Costs?

    Oct 15, 2015· For example, while BHP Billiton and Rio Tinto have grades averaging close to 60%61% with a fines-to-lump ratio of close to 2:1, Fortescue Metals Group has grades below 58% with fines ...

  • Iron ore 2016 midyear outlook | Bloomberg Professional ...

    Aug 01, 2016· BHP Billiton, Rio Tinto, Fortescue and Vale remain at the bottom of the operating cost curve, based on a BI standardized method for calculating iron ore costs across the worlds top iron ore ...

  • Someone needs to go broke in the Australian iron ore ...

    Mar 27, 2015· The nations biggest iron ore miners, Rio Tinto and BHP Billiton, ... \As the highest cost major iron ore producer with $11bn of debt, Fortescue was in a more precarious position than other ...

  • BHP Billiton, Rio Tinto and Fortescue are in no rush to ...

    Jul 17, 2016· BHP Billiton, Rio Tinto and Fortescue are in no rush to change iron ore balance. It's highly likely that Fortescue Metals Group will be the only one of the Big Three iron ore players to beat its ...

  • Iron Ore Miners Brace for Survival of the Fittest | Barron's

    Apr 02, 2015· When iron ore prices were high in 2010 and 2011, the big four producers - BHP Billiton, Rio Tinto, Fortescue Metals, and Brazils Vale ( VALE) made massive investments in new capacity. All ...

  • Performing a Five Force Analysis The Australian Iron Ore ...

    (Allday, 2015). The three major iron ore miners in Australia that have dominated throughout are Rio Tinto, BHP Billiton and Fortescue Metal Groups (FMG). The major iron ore miners are said to push ahead with a pipeline of aggressive production plans over the coming quarters despite overwhelming seaborne prices.

  • BHP Billiton expects iron ore cost curve to flatten

    Mar 10, 2015· Speaking at the annual Global Iron Ore and Steel Forecast Conference in Perth on Tuesday, March 10, Jimmy Wilson, BHP Billiton iron ore president, said that the iron ore cost curve will continue to flatten as low-cost seaborne supply replaces high cost supply in the market. In the short term, BHP Billiton expects iron ore prices to remain subdued as low-cost

  • Iron ore miners should leave if they can't compete - ABC News

    May 19, 2015· Iron ore prices are plummeting, federal budget tax receipts are shrinking and Fortescue Metals Group chairman, Andrew "Twiggy" Forrest, reckons he knows who is to blame: BHP Billiton

  • Iron ore rout wipes nearly $300 mln off Fortescue bonds ...

    Jul 09, 2015· Falling iron ore prices are dragging Fortescue Metals Group bonds lower, cutting the value of the Australian miner's recently issued senior secured note by nearly $300 million.

  • Discounts for lower-grade iron ore here to stay, says BHP ...

    Jul 23, 2014· ''Fortescue expects the iron ore market to rebalance in the short term as higher cost production leaves the market, flattening the global cost curve and stabilising the price,'' the company said on July 11. Atlas Iron managing director Ken Brinsden on July 10 also predicted a reversion to traditional price discounts.

  • A Look At BHP Billiton's Iron Ore Exposure (NYSE:BHP ...

    Aug 24, 2012· As per BHP's presentation, a $1 move per ton in iron ore represents a $110 million change to net profit. With BHP's average for last year hovering around $126, if the market was to now stabilize ...

  • (PDF) TECHNICAL AND ECONOMIC OVERVIEW OF IRON ORE ...

    Production is dominated by Rio Tinto, BHP Billiton and Fortescue Metals Group, which together in 2012/13, accounted for 92% of total Australian iron ore production. Figures - uploaded by Faith ...

  • Delivering in an Evolving Market - BHP

    1. All iron ore products including lump, fines, pellet feed and pellets, . 2. Share of exports in 2014. BHP Billiton data excludes Samarco. 2008-2014 CAGR Share of exports2 Rest of World 10% 31% Vale 3% 21% Rio Tinto Pilbara 8% 20% BHP Billiton WAIO 11% 17% Fortescue 46% 11% Total 10% Total iron ore export growth1 0 20 40 60 80 100

  • Cost cuts keep Fortescue in black despite iron ore plunge

    Apr 16, 2015· Australia's Fortescue Metals Group Ltd slashed costs more than expected to stay in the black last quarter, as it scrambles to avoid the fate of smaller rivals in the beaten down iron ore market. Two small iron ore companies have shut mines in the past week, while Goldman Sachs (NYSE: GS-PB - news) says half the world's so-called "tier two" miners - which includes Fortescue - are at risk of ...

  • Global iron ore cost curves in focus - Australian Mining

    Jul 01, 2016· Global iron ore cost curves in focus. July 1, 2016 News Ben Creagh Sharon Masige. Latest News. ... Vale, and BHP Billiton, not only for holding the largest share of

  • Iron ore rout wipes nearly $300 mln off Fortescue bonds

    Jul 09, 2015· Falling iron ore prices are dragging Fortescue Metals Group bonds lower, cutting the value of the Australian miner's recently issued senior secured note by nearly $300 million. Fortescue Chairman Andrew "Twiggy" Forrest tried unsuccessfully to persuade bigger rivals Rio Tinto (LSE: RIO.L - news) and BHP Billiton (NYSE: BBL - news) to slow down expansion work to support the price.

  • BHP Billiton and Iron Ore Unit Costs: A Peer Comparison

    Aug 24, 2017· BHPs iron ore asset WAIO (Western Australia Iron Ore) contributes more than 90.0% of the companys total iron ore production. Production at this site rose 4.0% to 231.0 million tons in fiscal ...

  • Investment Opportunities in Iron Ore Investiv

    RIO and BHP require iron ore prices at around $25 to break even while Fortescue and VALE require prices to be around $40. 25% of global iron ore production has costs above the current spot price and most of the high cost producers are in China.

  • How Are Iron Ore Miners Placed on the Cost Curve?

    Oct 14, 2015· Further cost reductions. BHP Billiton (BHP) (BBL) stated that it is trying to bring its cash costs down to $15 per ton in fiscal 2016 from $19 in

  • How Much Lower Can BHP Billiton Push Its Costs in Iron Ore?

    Aug 18, 2016· Cost-cutting in iron ore BHPs total iron ore production increased by 2% in fiscal 2016 to a record 227 million tons. More than 90% of BHPs iron ore comes from WAIO (Western Australia iron ore).

  • Iron Ore Review Where to for the West African juniors?

    The low cost production in Australia is now more likely to drive iron ore prices rather than the marginal cost of production in China as rapid demand in China is no longer the key driver. Figure 2 Shifting70 Iron Ore Cost Curve Source: BHP Billiton Presentation, Platts 0 10 20 30 40 50 60 Traded Iron Ore Aluminium Copper TiO2 Seaborne ...

  • Iron ore | BHP

    Iron makes up close to 5% of the Earth's crust. It takes around 1.6 tons of iron ore to produce one ton of steel. The chemical symbol for iron is 'Fe' because of its Latin name Ferrum. We use 20 times more iron (in the form of steel) than all other metals put together. Our iron ore trains are over 2.5km (264 ore cars) long, meaning it can take ...

  • Iron ore cost curve set to flatten, BHP Billiton says ...

    Mar 10, 2015· BHP Billiton is expecting the cost curve of iron ore to flatten as low-cost seaborne supply replaces high-cost materials.

  • Iron Ore | ScienceDirect

    This has put considerable pressure on the higher-cost iron ore producers to reduce costs, and even the major producers such as BHP Billiton, Rio Tinto, Vale, Fortescue Metals Group (FMG), and Kumba Iron Ore at the lower end of the cost curve are under pressure to reduce costs.

  • BHP Billiton and Fortescue's Cost Curves Skew Iron Ore ...

    Feb 28, 2013· The bank, in a note to investors, reviews two recent estimates of the industrys cost curves made by Fortescue Mining Group (FMG) and BHP Billiton (BHP

  • How Standard Bank Explains Divergence in Iron Ore Cost Curves

    Feb 28, 2013· FMGs cost curve assumes 300 million tons of high-cost Chinese domestic iron ore concentrate sits at the top of the seaborne cost curve, in the range of $120-$165/ton, according to the bank.

  • 11 February 2015 RESETTING IRON ORE EXPECTATIONS

    Tinto, BHP Billiton, and Fortescue Metals added 100 million tonnes to Australian iron ore exports three times the 30 million tonnes added each year over the previous decade. While growth in demand in ... SEABORNE IRON ORE COST CURVE. Source: ANZ

  • Fortescue's steel price trap - The Australian

    Jun 04, 2012· Fortescue: an aggressive miner somewhere in the middle of the cost curve BHP Billiton and Rio Tinto are the very best iron ore operations in the world. Vale is

  • Tracking The Cost Leaders In Iron Ore Production

    Feb 01, 2013· Aside from Rio Tinto, we expect BHP Billiton and Fortescue Metals to be the lowest-cost iron ore producers in the world. Apart from their high-grade mineral ores, these two companies are well-positioned with its extensive infrastructure support and close proximity to China, which accounts for 60% of global iron ore consumption.

  • Fortescue running in black despite iron ore plunge

    Apr 16, 2015· But with Fortescue cutting costs as fast as bigger rivals Rio Tinto and BHP Billiton , the industry cost curve was being driven lower and flatter, which did not bode well for producers in an ...

  • Commodities - MINING

    Figure 1: Seaborne iron ore cost curve Source: Fortescue Figure 2: Schematic iron ore cost curve Source: BHP Billiton By Melinda Moore . 3 Commodities Commodities Daily 26 February 2013

  • Discounts for lower-grade iron ore here to stay, says BHP ...

    Jul 22, 2014· ''Fortescue expects the iron ore market to rebalance in the short term as higher cost production leaves the market, flattening the global cost curve and stabilising the price,'' the company said ...

  • Iron Ore Miners Brace for Survival of the Fittest | Barron's

    Apr 02, 2015· When iron ore prices were high in 2010 and 2011, the big four producers - BHP Billiton, Rio Tinto, Fortescue Metals, and Brazils Vale ( VALE)