Why would MGT have to beat $15 a tonne? There’s iron ore...

Why would MGT have to beat $15 a tonne? There’s iron ore projects all over the world that can’t produce as cheap as the Autralian 3 majors. Just because their profits per tonne are larger doesn’t mean other projects can’t be successful. Plus we’ve already established, yourself included, that the majors cost of production will rise with benefication. Increased production costs and loss of product through benefication will result in less profit for hematite producers and shortened mine life. With carbon pricing due to ramp up, there’s more added costs.

MGT doesn’t need to have the lowest production costs in the game. The iron ore premium cancels that out, like you’ve already agreed. As the project matures and efficiency increases, production costs will drop. Factor in the potential of the future SA green steel industry and there’s more potential savings on shipping.