ore quality, page-25

Iron ore
Primarily found as the oxides or iron, notably haematite and magnetite.

Broadly iron ores may be grouped as:

Haematite: -- Direct shipping ore (DSO) generally better than 60 per cent iron (Fe) which is mined and used in blast furnaces requiring only simple preparation.

Magnetite: -- Beneficiable ore which can contain as little as 25 per cent Fe though upgradable to around 60 per cent Fe by magnetic separation.

In GBG case their Magnetite ore is somewhere around 36% and is up-gradable to 68%

Magnetite

The key advantages of magnetite projects
* Concentrate / pellets have excellent exothermic characteristics and generally lower impurities ideal for steel making.
* Prices received for concentrate and pellets are at significant premiums to fines and lump ore respectively.
* Better processing environmental behavioral characteristics when compared to iron ore fines sintering.

The key disadvantages of magnetite projects
* Higher capital intensity per unit of output.
* Higher processing costs per unit of output.
* Projects are not scaleable without significant new capital expenditure.