bhp and its day of reasoning, page-157

At 200 oil, Brazil will need nuclear-powered capesize vessels to travel around the horn of Africa, across the Atlantic, and the Indian Ocean and finally the South China Sea to remain competitive in Iron Ore.
Kloppers has maintained that there is a $60 transport differential per tonne between Vale and the Pilbara. That is 1/2 barrel of oil. Even Vale admits that it is not a natural supplier to China. Kloppers knows that there will come a time when Brazilian ore across all these seas will be economically ridiculous. 1/2 barrel of oil, on say 200 million tonnes of ore in the next few years translates to 100 million barrels of equivalent barrels of oil per year in differential advantage. Australians should realize that it is not just about the resources we are blessed with, it is location, location, location. BHP has its bases fully covered, so hang on to the big fella. 90% increase in iron ore contract for 2008, we haven't seen nothing yet. Now what about met. coal you say? LNG anyone?