Resources giant BHP Billiton Limited (ASX: BHP) says it is...

Resources giant BHP Billiton Limited (ASX: BHP) says it is aiming to bypass Rio Tinto Limited (ASX: RIO) in lowering its iron ore production costs. Deutsche Bank estimates BHP’s all in cash costs at US$51 a tonne, compared to Rio’s US$45 a tonne. Other analysts estimate BHP breaks even at US$55 per tonne, compared to Rio at US$44 per tonne. Brazilian giant Vale has estimated costs at around US$75 a tonne, mainly because it has to ship the ore further from Brazil to China. That’s slightly higher than Fortescue Metal Group Limited’s (ASX: FMG) estimated cost of US$72 a tonne, but a key factor to take into account is the ore quality between the miners. Most of Fortescue’s ore is sold at lower than spot prices, due to its lower iron ore content. The current discount price has blown out, with Rio offering discounts of between 6% and 13% for its lower grade product, and Fortescue offering customers a 14% discount, compared to the average of 2% last year.

NSL are producing a 52% FE finished product from a 28% FE feed current mine gate sale price is $A56 NSL production cost is $A28 per ton the above production costs for BHP and RIO are in US dollars and then it has to be shipped from the Pibara to its destination and add some transport cost at that end and I think you will find they won't want to compete with NSL IMO