AME's 2003 Iron Ore Industry Cost Report says the iron ore industry is gearing up for boom times, with China's thriving steel industry driving unprecedented levels of demand in international markets. The iron ore industry has reduced costs and increased output in response with long-term pride pressure and a changing market. Cost reductions have come from process reengineering, product quality improvement, labour rationalisation and efficient asset utilisation. In the past two years, CVRD, Rio Tinto and BHP Billiton have reduced costs by 13 per cent and the other top ten producers have pushed cash production costs down eight per cent. Since 1998, production costs have fallen 24 per cent.
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