While IO spot price has been dropping a bit the last couple of...

While IO spot price has been dropping a bit the last couple of weeks, it's good to see some comments around the likely future demand for higher-quality IO:

http://www.theaustralian.com.au/business/mining-energy/miners-at-risk-as-iron-ore-prices-fall-on-china-stock-glut-fears/story-e6frg9df-1226807138671
"Pollution controls around major Chinese cities also look like boosting demand for higher-grade iron ore, reversing a trend of demand for lower grades seen since the second half of 2011, [Macquarie bank] said."

Good news for the high-grade, low impurity DSO we have at Cockatoo if pollution controls in China continue to influence.

At the current spot price of US$123.20 and AUD at 88c, we're still at a pretty healthy AUD$140/tonne - time will tell what Pluton can get for its premium ore.