fe62 iron ore prices, page-10

The penalties are almost irrelevant in financial terms, the big cost is of course the lost sale. Penalties also occur on the physicals not just chemistry, such as fines in lump, decreipitaion index and so on.

More relevant is the pricing against the hematite fines benchmark, the marra mamba and yandi orebodies have historically traded at a 5-9% discount to the traditional Australian hematities, worse again for the low quality iron ores such as Robe Rivers Panawonica material. Although in th boom spot market these discounts have at times evaporated