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 6 images and tables including:
- Proposed capacity and capital expenditure
- Project incentive prices
- Capacity additions
- Project capital intensity
- Average capital intensity
- Projects with capex changes
What's included
This report contains:
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