ocka"China wants a quality product!"That is true... High grade...

ocka

"China wants a quality product!"

That is true... High grade ore is in demand.. Low quality 58% ore is not so much.

http://au.news.yahoo.com/thewest/business/wa/a/21933793/green-china-may-change-ore-world/

From the link...

"Speakers said China's focus on environmental issues could lead to a structural shift in buying patterns favouring higher-grade product, lump ore and pellets, at the expense of lower-grade ore being shipped by Pilbara producers "

"The supply growth in the market in the past two years is driven by lower-quality ore out of Australia - 58 per cent ore. Starting from 2015 you're going to see much stronger growth in supply of higher-grade ore, especially coming out of Brazil," Mr Szpakowski said.

That would lead to a bigger difference in price between lower-grade Pilbara ore and higher-grade products produced by Brazil's Vale and BHP Billiton and Rio Tinto."


Add to that a combined silica and alumina of over 13%. Equals lower price. High grade ore, it is not.