That is peterbax's point - the 65% number comes from after...

That is peterbax's point - the 65% number comes from after benefication. And guess what? Benefication costs money to do - unless you know somewhere where HAV can get free money to build a benefication plant, with crushing and grinding infrastructure, limitless free sources of water, free electricity and other costs of mining and transport and removal and storage of non-iron waste minerals, none of which are low cost or free.

Here is a useful diagram showing the difference between the economics of hematite direct shipping ore and magnetite iron ore processes:

http://www.citicpacificmining.com/about/building-a-new-industry/