We estimate global average value-in-use (VIU) adjusted costs have increased 12% since 2016. Much of the increase has been driven by a rise in Australian VIU adjusted costs owing to higher penalties for low-grade ore and lower lump premiums, both of which Australia is a major supplier. Costs in other countries have also risen because of higher ocean freight rates and increased royalties as iron ore prices improved. But with iron ore prices now declining we expect these uncontrollable cost increases will reverse and VIU adjusted costs edge lower in H2 2017. The attached spreadsheet contains VIU adjusted iron ore costs on a mine-by-mine and company basis.