Insight
Iron ore project review 2019
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
Our estimated average capital intensity for 2019 has risen 30% to US$124 per tonne. While we had forecast a small, gradual increase in capital costs going forward, this jump was larger than anticipated. With several large projects underway and other smaller developers seeking to re-enter the market, the increased competition for labour and materials is driving costs up. But tight supply and strong Chinese demand has resulted in a rising iron ore price which is attracting interest in both new and old projects. Looking forward, we can expect to see some smaller re-starts and expansions successfully commence production but larger greenfield projects with high capital requirements are still likely to find financing difficult.
Table of contents
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Iron ore project review 2019
- Executive Summary
- High iron ore prices spur interest in projects
- Revitalising old projects
- Project completions
- Capital costs rise 30%
Tables and charts
This report includes the following images and tables:
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Proposed capacity and capital expenditureProject incentive pricesCapacity additions
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Project capital intensityAverage capital intensityProjects with capex changes
What's included
This report contains:
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