Ann: Fortescue Leadership Changes, page-130

Cost over runs are nothing new in mining. Even the best get it wrong.

It goes to show how expensive it is to bring significant new iron ore mines to market.

Right now with so much heat in commodities, and with the restrictions of the pandemic it is very expensive to build stuff, the cost to build anything is exploding.

Mining companies are competing with each other to build or maintain infrastructure, for space at the port for mechanics, engineers, geo techs etc etc during a period when the simple movement of workers is restrained let along plant and machinery.

That's what happens in a super cycle during a pandemic.

Can you imagine what the cost will be to bring on new supply once the world is vaccinated & the stimulus packages are going into over drive??

It is less economical to bring on new supply which in turn puts a cap on significant new supply, which in turn supports price.

Just like the Juukan Gorge, the burnt loader at Ponta de Madeira and the death of the Vale back hoe contractor at the Corrego do Feijao mine...