The Breakeven levels of Rio and BHP are $28 and $31 respectively. BE level of FMG is $48. see https://www.*.com.au/iron-ore-breakeven-rates-major-miners-macquarie-bank-2018.
This means that iron unit cost is lower than this level e.g., unit costs of BHP are $15.05 per ton in the first half of 2017. see https://marketrealist.com/2017/02/can-lead-cost-reduction-bhps-iron-ore-segment-going-forward
If China gets involved in this huge project, the current volatility of iron price will not drive them away. They invest for long haul and not short-term.
For example: https://www.raconteur.net/business/china-kick-starts-biggest-project-on-planet-earth
China kick-starts ‘biggest project on planet Earth’
https://www.herbertsmithfreehills.c...elt-and-road-initiative-projects-pave-the-way
A European opinion on SDL, page-25
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