increase in jorc , page-50

Hi(backontrack)
BHP I believe normaly sell on contract price which would be around $65.00 depending on grade of ore and impurities.
RIO at present are telling the Chinese they want a price increase of 81%.If China do not agree,RIO have said they will sell a percentage of their iron ore on the spot market where thay can get up to $200.00 per tonne.
If China agree with RIO & BHP they will get about $118.00 per tonne,but be gauranteed China will take say 200ml tonnes this year from RIO & 200ml tonnes from BHP.If they do not agree on the increase RIO say they will sell say 15% of their ore to the likes of Korea-India-Japan whare some mills will pay up to $200.00 per tonne.

If RIO and BHP get the price increase SDL should get around $118.00 per tonne for their +60%Fe iron ore if the price is the same when they start exporting their iron ore.So $40.00 per tonne profit would go to $93.00 profit per tonne if all expences stayed the same.
This is what i understand to be the way it works,but I stand to be corrected if I have it wrong.
Regards
Westcott.