Jan 12, 2015 · Vale Seen Overtaking BHP, Rio as Cheapest Iron Shipper Brazil’s Vale SA, the largest exporter of steel-making iron ore, has usurped its two nearest rivals to become the lowest-cost producer as a slump in the price of oil cuts shipping costs, according to Sanford C Bernstein Ltd To continue reading this article you must be a Bloomberg Professional Service Subscriber
Rio is aiming to cut its cost for iron ore delivered to China, including transport, to $35.50 a tonne by 2020 from $40. That would imply medium-term cash costs "considerably lower than $20 on the same basis (as BHP)", Harding said. Iron ore makes up about 90 percent of Rio's profits.
Rio is aiming to cut its cost for iron ore delivered to China, including transport, to $35.50 a tonne by 2020 from $40. That would imply medium-term cash costs "considerably lower than $20 on the same basis (as BHP)", Harding said. Iron ore makes up about 90 percent of Rio's profits.
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BHP recently announced its aim to become the world’s cheapest iron ore producer. It aims to reduce costs by 25 per cent to less than US$20 a tonne which would see it overtaking Rio as the lowest cost iron ore producer to China6. According to UBS, smaller Australian iron ore producers have a break-even point of between US$80 and $107 a tonne.
Rio is aiming to cut its cost for iron ore delivered to China, including transport, to $35.50 a tonne by 2020 from $40. That would imply medium-term cash costs "considerably lower than $20 on the same basis (as BHP)", Harding said. Iron ore makes up about 90 percent of Rio's profits.