Iron ore cost cuts in Australia and China, but will it last?

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Report summary

Iron ore producers in Australia and China have been forced to reduce costs in view of low commodity prices. Companies have undertaken various means to cut costs under difficult market conditions. The Average Australian FOB cost has dropped from US$29.3/tonne in 2014 to US$21.8/tonne in 2015. Savings have been realised in the areas of low diesel prices, labour, operations and government support.

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    Iron ore cost cuts in Australia and China, but will it last?

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Table of contents

Tables and charts

This report includes 5 images and tables including:


  • Required transport and port cost reductions for 2016
  • Comparison of cost saving initiatives in Australia and China


  • Cost drivers for mid-tier Australian producers
  • Required transport and port savings for high-cost Australian producers
  • Australian and Chinese mining cost per tonne

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