Why would any company keep on spending money on a low grade Iron...

Why would any company keep on spending money on a low grade Iron Ore Project where the CAPEX is $billions (which CAP does not have) and where the price of iron ore is now $62 pt and falling.

The Australian dollar has declined but for how long will that last when $billions in LNG exports start coming in from those new facilities in QLD.

Company's in the iron ore business are falling over every other day.

CAP should be selling anything they can, relinquishing leases that are not essential so as to to save costs, sell leases to others if somebody wants to buy them, dismiss all staff and get the admin costs down to close to nothing and bunker down for the next boom which will not be for another 15-20 years.

Hawsons is a marginal project. It is very low grade and the ore body is at least 50 meters below the surface. It needs a lot of water to operate which it does not have without a desalination plant (a hell of a lot more money). Being 50 meters below the surface means somebody has to pay to scrape off the first 50 meters before any ore can be mined.

That will cost $200m before any money is earned. Who is going to front up and pay for this expense together with the other production costs in today's market?

Nobody.