Still Confident?, page-56

This is a classic late cycle commodity market. The low cost iron ore producers (BHP, RIO, Vale) with all in sustaining costs of sub $50/t are going to take a vast amount of market share away from the high cost producers (ie those above $65/t). As Colin Barnett (WA Premier) has identified, it is a "scorched earth policy" by the major Fe producers. Consequently funding costs for any expansion plans is going to be very very expensive ie equity holders will not get rewarded. As a result, the Fe price will need a sustained recovery to justify the economics of new projects. Good luck to existing holders.