SuperTim...
"Why blend it with Irvine ore when there is bucketloads of low grade on cockatoo?"
I believe that they will blend some higher grade with Irvine ore at the start of mining operations. There is a lot of depth to go through to get to the better ore, so a bit of blending will help out ...
"the premium for 68%Fe isn't there no point selling it.."
The gap is getting wider :)
The Chinese drive for lowering pollution from manufacturing will drive demand for higher quality ore, in so driving the quality divide higher. Some of the lower quality ores contain sulphur, these will be very hard to sell. If they can be sold at all. As will be the case for all high sulphur minerals.
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