Australia is the largest supplier of iron ore into the seaborne export market. It is dominated by three major producers; BHP Billiton, FMG and Rio Tinto who account for 87% of total ore produced. Australia's mining costs are the second lowest worldwide due to a combination of large scale operations that afford economies of scale, high grade material that requires little to no beneficiation, and owner-operated infrastructure. We are forecasting a small rise in C1 costs to US$16.70 in 2018 mainly due to higher fuel prices but these will be largely offset by ongoing productivity gains as automation on sites is extended. Total cash costs are expected to rise again due to higher royalty and freight charges. While costs will rise gradually over the next few years they will remain low with most internal cost cutting initiatives, sustainable.