the premium for magnetite offsets the extra productions costs.
haemetite grades worldwide are falling with impurities rising. The demand for high quality ore will increase more than you can imagine and magnetite concentrate grades of 70% will attract a premium in the market.
Iron ore prices are set to increase another 20% in 2009 and 10% in 2010 according to citibank.
Dont be a fool and think that magnetite isnt profitable, you will be left on the sidelines if you avoid fundamentals.
