haematite, the average grade is what determines how economical china's domestic IO production is and how much ore it can economically feed it's steel industry.
Have a look at the FMG graph again, the lion share of china's ore by tonnage is LOW GRADE crap.
It won't change China's dependence on the Big3 if a minority of the resource is of reasonable grade.
Tell me just one mine in China with supporting data (the very best they have) that can be regarded as low-cost by world standard.
Again, no need to look further than the IO spot price.
SDL Price at posting:
32.0¢ Sentiment: None Disclosure: Held