Mine Costs Confidential: see contract at www.ame.com.

au

Table A.14
2002 Iron Ore Costs - FOB (alphabetically)
Nominal Terms

Costed Cash Costs, US$/tonne

Mine Country Production Transport Pellet- Total
dry Mt Mining Processing & Ports Royalties izing FOB
Agua Limpa/Cururu Brazil 3.0 2.01 1.77 2.96 0.36 - 7.10
Águas Claras Brazil 1.4 1.61 1.44 3.93 0.40 - 7.38
Alegria Brazil 9.3 2.68 1.92 3.12 0.40 - 8.12
Alegria / Germano (Samarco) Brazil 1.3 2.12 3.58 2.09 0.21 - 8.00
Alegria / Germano (Samarco) Pellets Brazil 11.4 2.12 3.58 2.09 0.21 7.46 15.46
Area C Australia 0.7 11.98 2.89 2.59 0.71 - 18.17
Bailadila 5,14,11c India 11.6 1.89 2.63 9.85 0.49 - 14.86
Baiyun China 4.0 19.88 7.22 3.92 - - 31.02
Beeshoek South Africa 5.3 4.70 1.71 4.71 - - 11.12
BHPB-OB23/25 Australia 5.2 2.80 1.10 2.80 0.87 - 7.57
BHPB-Yandi Australia 31.8 1.73 0.30 2.58 0.62 - 5.23
Brucutu Brazil 0.1 10.93 1.80 2.52 0.20 - 15.45
Capanema * Brazil 2.6 2.52 1.13 2.60 0.38 - 6.63
Carajás Brazil 48.8 1.64 0.73 1.57 0.39 - 4.33
Carajás Pellets Brazil 0.7 1.64 0.73 1.57 0.39 5.75 10.08
Carol Lake Canada 3.0 4.54 5.54 3.24 - - 13.32
Carol Lake Pellets Canada 9.4 4.54 5.54 3.24 - 12.14 25.46
Casa de Pedra Brazil 12.5 2.41 2.06 2.90 0.40 - 7.77
Cauê/Minas do Meio * Brazil 8.9 2.64 1.09 2.52 0.38 - 6.63
Chadormalu Iran 4.7 2.45 2.35 2.73 1.89 - 9.42
Channar Australia 10.1 3.61 0.89 2.32 0.72 - 7.54
Choghart Iran 2.4 2.29 1.67 2.42 1.92 - 8.30
Cockatoo Island Australia 0.3 10.22 0.14 1.12 1.07 - 12.55
Conceição * Brazil 8.7 2.32 1.25 2.52 0.40 - 6.49
Córrego do Feijão Brazil 6.0 2.24 1.89 4.45 0.41 - 8.99
Córrego do Meio Brazil 1.1 2.93 1.83 3.23 0.38 - 8.37
Corumbá Brazil 0.8 3.00 1.69 4.48 0.42 - 9.59
CVRD Southern System Plants Pellets Brazil 23.2 1.63 1.50 2.32 0.44 7.48 13.37
Donimalai India 2.7 2.03 2.37 11.15 0.45 - 16.00
Empire Mine Pellets USA 3.6 11.32 6.15 2.02 0.19 9.95 29.63
Fazendão Brazil 0.8 2.53 2.07 2.16 0.43 - 7.19
Goldsworthy (Nimingarra-Yarrie) Australia 6.9 6.77 0.78 2.38 1.15 - 11.08
Gongo Soco * Brazil 4.9 2.42 0.70 2.59 0.37 - 6.08
Guelb El Rhein Mauritania 3.9 2.62 2.96 6.69 1.87 - 14.14
Hibbing Taconite Pellets USA 7.6 9.27 6.79 2.47 1.19 8.88 28.60
HIYandi Australia 16.7 1.95 0.62 2.21 0.92 - 5.70
Jangada Brazil 2.4 3.87 1.21 4.28 0.38 - 9.74
Jimblebar Australia 5.0 4.07 0.79 2.82 0.72 - 8.40
Karelsky Okatysh Russia 0.3 7.95 6.33 5.99 - - 20.27
Karelsky Okatysh Pellets Russia 6.9 7.95 6.33 5.99 - 6.13 26.40
Kedia d'Ijill Mauritania 2.3 4.39 0.45 6.66 1.90 - 13.40
Keetac Pellets USA 5.5 6.76 5.63 2.28 1.19 9.48 25.34

——————AME Mineral Economics • Iron Ore 2007——————

A - 31
Confidential: see contract at www.ame.com.au Mine Costs

Table A.14 (Continued)

2002 Iron Ore Costs - FOB (alphabetically)
Nominal Terms

Costed Cash Costs, US$/tonne

Mine Country Production Transport Pellet- Total
dry Mt Mining Processing & Ports Royalties izing FOB
Kiruna Sweden 3.0 6.62 2.81 3.01 - - 12.44
Kiruna Pellets Sweden 9.9 6.62 2.81 3.01 - 11.83 24.27
Koolyanobbing Australia 3.9 6.11 0.65 5.11 1.13 - 13.00
Kudremukh India 5.2 2.65 4.51 3.02 0.07 - 10.25
Kudremukh Pellets India 3.2 2.65 4.51 3.02 0.07 10.30 20.55
Lebedinsky GOK Russia 9.4 5.31 5.64 14.46 1.56 - 26.97
Lebedinsky GOK Pellets Russia 8.2 5.31 5.64 14.46 1.56 6.24 33.21
Los Colorados Chile 0.5 4.19 2.37 3.13 1.11 - 10.80
Los Colorados Pellets Chile 3.8 4.19 2.37 3.13 1.11 9.15 19.95
Malmberget Sweden 3.0 6.61 2.08 3.72 - - 12.41
Malmberget Pellets Sweden 3.9 6.61 2.08 3.72 - 12.95 25.36
Marandoo Australia 9.1 2.64 0.42 1.97 0.75 - 5.78
Marcona Peru 1.4 7.77 2.54 2.40 1.28 - 13.99
Marcona Pellets Peru 3.0 7.77 2.54 2.40 1.28 10.16 24.15
M'Haoudat Mauritania 3.1 3.35 0.40 6.88 1.90 - 12.53
Mikhailovsky GOK Russia 6.5 8.76 6.43 15.25 1.57 - 32.01
Mikhailovsky GOK Pellets Russia 7.9 8.76 6.43 15.25 1.57 6.25 38.26
Mina do Andrade Brazil 1.1 1.19 0.96 0.96 0.39 - 3.50
Minntac Pellets USA 14.5 7.55 5.58 2.24 1.19 9.45 26.01
Minorca Pellets USA 2.8 8.92 6.37 2.11 1.19 10.16 28.75
Mont-Wright Canada 4.0 6.57 4.74 5.16 - - 16.47
Mont-Wright Pellets Canada 7.5 6.57 4.74 5.16 - 10.80 27.27
Mount Whaleback/OB30 Australia 19.2 4.69 1.08 2.30 0.76 - 8.83
Nanfen China 3.5 15.91 5.80 5.11 - - 26.82
Northshore Pellets USA 4.2 7.14 7.07 2.00 1.19 9.64 27.04
Paraburdoo Australia 8.6 3.70 0.87 2.10 0.75 - 7.42
Piar Division Venezuela 15.3 5.13 1.25 3.54 0.51 - 10.43
Piar Division Pellets Venezuela 2.3 5.13 1.25 3.54 0.51 7.44 17.87
Pico Complex Brazil 11.0 2.69 1.49 4.13 0.39 - 8.70
Qidashan China 1.8 37.68 9.22 3.91 - - 50.81
Robe River Iron Ore (Pannawonica) Australia 28.6 2.27 0.44 2.26 0.63 - 5.60
Romeral, El Chile 2.0 12.37 3.58 2.75 1.12 - 19.82
Savage River Australia 0.0 14.12 6.06 1.79 0.13 - 22.10
Savage River Pellets Australia 2.1 14.12 6.06 1.79 0.13 10.85 32.95
Segredo/João Pereira Brazil 0.7 2.05 2.78 2.99 0.38 - 8.20
Segredo/João Pereira Pellets Brazil 4.4 2.05 2.78 2.99 0.38 8.35 16.55
Shuichang China 3.4 35.31 12.25 4.81 - - 52.37
Sishen South Africa 25.9 6.31 0.85 4.71 - - 11.87
Taharoa New Zealand 1.6 1.02 2.63 2.50 0.81 - 6.96
Tamanduá/Capitão do Mato/Abóboras Brazil 14.1 3.20 0.89 4.13 0.39 - 8.61
Thabazimbi South Africa 2.3 14.94 1.99 4.03 - - 20.96
Tilden Pellets USA 7.9 7.96 5.05 2.11 0.18 9.53 24.83

——————AME Mineral Economics • Iron Ore 2007——————

A - 32
Mine Costs Confidential: see contract at www.ame.com.au

Table A.14 (Continued)

2002 Iron Ore Costs - FOB (alphabetically)
Nominal Terms

Costed Cash Costs, US$/tonne

Mine Country Production Transport Pellet- Total
dry Mt Mining Processing & Ports Royalties izing FOB
Timbopeba * Brazil 3.0 3.51 1.12 2.59 0.22 - 7.44
Tom Price Australia 20.1 4.29 0.63 1.94 0.76 - 7.62
United Taconite Pellets USA 4.2 6.84 6.49 2.11 1.25 8.92 25.61
Wabush Mines Pellets Canada 4.5 8.23 8.43 5.94 - 13.47 36.07
West Angelas Australia 4.3 5.31 0.40 2.63 0.70 - 9.04
Whyalla (Iron Duke/Duchess/Knight) Australia 3.2 6.01 1.04 2.12 0.71 - 9.88

Total/Averages (Non-Agglomerated) 448.6 4.13 1.56 3.58 0.58 - 9.85

Total/Averages (Agglomerated) 162.6 5.87 4.54 4.08 0.60 9.09 24.18
Total Costed Production 611.1

* Production shown is saleable ore, excluding pellet feed to CVRD Southern System Pellet Plants.

——————AME Mineral Economics • Iron Ore 2007——————

A - 33
Confidential: see contract at www.ame.com.au Mine Costs

Table A.15
2002 Iron Ore Costs - FOB (ranked)
Nominal Terms
Rank Mine Cost %-ile Rank Mine Cost %-ile
$/t Rank $/t Rank
1 Mina do Andrade 3.50 0.2% 46 Cockatoo Island 12.55 62.6%
2 Carajás 4.33 8.2% 47 Koolyanobbing 13.00 63.2%
3 BHPB-Yandi 5.23 13.4% 48 Carol Lake 13.32 63.7%
4 Robe River Iron Ore (Pannawonica) 5.60 18.1% 49 CVRD Southern System Plants 13.37 67.5%
5 HIYandi 5.70 20.8% 50 Kedia d'Ijill 13.40 67.9%
6 Marandoo 5.78 22.3% 51 Marcona 13.99 68.1%
7 Gongo Soco 6.08 23.1% 52 Guelb El Rhein 14.14 68.7%
8 Conceição 6.49 24.5% 53 Bailadila 5,14,11c 14.86 70.6%
9 Capanema 6.63 24.9% 54 Brucutu 15.45 70.7%
10 Cauê/Minas do Meio 6.63 26.4% 55 Alegria / Germano (Samarco) Pellets 15.46 72.5%
11 Taharoa 6.96 26.6% 56 Donimalai 16.00 73.0%
12 Agua Limpa/Cururu 7.10 27.1% 57 Mont-Wright 16.47 73.6%
13 Fazendão 7.19 27.2% 58 Segredo/João Pereira Pellets 16.55 74.3%
14 Águas Claras 7.38 27.5% 59 Piar Division Pellets 17.87 74.7%
15 Paraburdoo 7.42 28.9% 60 Area C 18.17 74.8%
16 Timbopeba 7.44 29.4% 61 Romeral, El 19.82 75.1%
17 Channar 7.54 31.0% 62 Los Colorados Pellets 19.95 75.8%
18 BHPB-OB23/25 7.57 31.9% 63 Karelsky Okatysh 20.27 75.8%
19 Tom Price 7.62 35.2% 64 Kudremukh Pellets 20.55 76.3%
20 Casa de Pedra 7.77 37.2% 65 Thabazimbi 20.96 76.7%
21 Alegria / Germano (Samarco) 8.00 37.4% 66 Savage River 22.10 76.7%
22 Alegria 8.12 39.0% 67 Marcona Pellets 24.15 77.2%
23 Segredo/João Pereira 8.20 39.1% 68 Kiruna Pellets 24.27 78.8%
24 Choghart 8.30 39.5% 69 Tilden Pellets 24.83 80.1%
25 Córrego do Meio 8.37 39.6% 70 Keetac Pellets 25.34 81.0%
26 Jimblebar 8.40 40.5% 71 Malmberget Pellets 25.36 81.7%
27 Tamanduá/Capitão do Mato/Abóboras 8.61 42.8% 72 Carol Lake Pellets 25.46 83.2%
28 Pico Complex 8.70 44.6% 73 United Taconite Pellets 25.61 83.9%
29 Mount Whaleback/OB30 8.83 47.7% 74 Minntac Pellets 26.01 86.3%
30 Córrego do Feijão 8.99 48.7% 75 Karelsky Okatysh Pellets 26.40 87.4%
31 West Angelas 9.04 49.4% 76 Nanfen 26.82 88.0%
32 Chadormalu 9.42 50.2% 77 Lebedinsky GOK 26.97 89.5%
33 Corumbá 9.59 50.3% 78 Northshore Pellets 27.04 90.2%
34 Jangada 9.74 50.7% 79 Mont-Wright Pellets 27.27 91.4%
35 Whyalla (Iron Duke/Duchess/Knight) 9.88 51.2% 80 Hibbing Taconite Pellets 28.60 92.7%
36 Carajás Pellets 10.08 51.3% 81 Minorca Pellets 28.75 93.1%
37 Kudremukh 10.25 52.2% 82 Empire Mine Pellets 29.63 93.7%
38 Piar Division 10.43 54.7% 83 Baiyun 31.02 94.4%
39 Los Colorados 10.80 54.8% 84 Mikhailovsky GOK 32.01 95.4%
40 Goldsworthy (Nimingarra-Yarrie) 11.08 55.9% 85 Savage River Pellets 32.95 95.8%
41 Beeshoek 11.12 56.8% 86 Lebedinsky GOK Pellets 33.21 97.1%
42 Sishen 11.87 61.0% 87 Wabush Mines Pellets 36.07 97.9%
43 Malmberget 12.41 61.5% 88 Mikhailovsky GOK Pellets 38.26 99.1%
44 Kiruna 12.44 62.0% 89 Qidashan 50.81 99.4%
45 M'Haoudat 12.53 62.5% 90 Shuichang 52.37 100.0%

——————AME Mineral Economics • Iron Ore 2007——————

A - 34
Mine Costs Confidential: see contract at www.ame.com.au

Table A.16
2002 Iron Ore Costs - FOB (ranked)
Nominal Terms
Rank Mine Cost %-ile Rank Mine Cost %-ile
¢/MTU Rank ¢/MTU Rank
1 Mina do Andrade 5.28 0.2% 46 M'Haoudat 19.48 62.6%
2 Carajás 6.46 8.2% 47 Marcona 20.13 62.8%
3 BHPB-Yandi 8.88 13.4% 48 Koolyanobbing 20.32 63.4%
4 Marandoo 9.02 14.9% 49 Carol Lake 20.50 63.9%
5 Gongo Soco 9.57 15.7% 50 CVRD Southern System Plants 20.56 67.7%
6 HIYandi 9.75 18.4% 51 Kedia d'Ijill 20.85 68.1%
7 Robe River Iron Ore (Pannawonica) 9.79 23.1% 52 Guelb El Rhein 21.43 68.7%
8 Conceição 10.00 24.5% 53 Bailadila 5,14,11c 22.48 70.6%
9 Cauê/Minas do Meio 10.20 25.9% 54 Alegria / Germano (Samarco) Pellets 23.34 72.5%
10 Capanema 10.53 26.4% 55 Donimalai 24.63 72.9%
11 Águas Claras 10.82 26.6% 56 Brucutu 24.80 73.0%
12 Fazendão 11.07 26.7% 57 Mont-Wright 25.33 73.6%
13 Agua Limpa/Cururu 11.24 27.2% 58 Segredo/João Pereira Pellets 25.45 74.3%
14 Paraburdoo 11.59 28.6% 59 Piar Division Pellets 27.08 74.7%
15 Timbopeba 11.59 29.1% 60 Area C 29.15 74.8%
16 Casa de Pedra 11.73 31.2% 61 Romeral, El 29.69 75.1%
17 Tom Price 11.88 34.5% 62 Karelsky Okatysh 29.81 75.2%
18 Channar 11.90 36.1% 63 Los Colorados Pellets 30.46 75.8%
19 Alegria / Germano (Samarco) 11.93 36.3% 64 Kudremukh Pellets 31.14 76.3%
20 Alegria 12.01 37.8% 65 Thabazimbi 32.74 76.7%
21 BHPB-OB23/25 12.04 38.7% 66 Savage River 32.82 76.7%
22 Taharoa 12.21 39.0% 67 Kiruna Pellets 36.21 78.3%
23 Segredo/João Pereira 12.49 39.1% 68 Marcona Pellets 36.59 78.8%
24 Choghart 12.50 39.5% 69 Malmberget Pellets 37.86 79.5%
25 Tamanduá/Capitão do Mato/Abóboras 12.64 41.8% 70 Keetac Pellets 38.45 80.4%
26 Pico Complex 13.13 43.6% 71 Lebedinsky GOK 39.08 81.9%
27 Córrego do Meio 13.18 43.8% 72 Carol Lake Pellets 39.17 83.4%
28 Jimblebar 13.37 44.6% 73 United Taconite Pellets 39.28 84.1%
29 Córrego do Feijão 13.49 45.6% 74 Tilden Pellets 40.37 85.4%
30 Mount Whaleback/OB30 13.75 48.7% 75 Karelsky Okatysh Pellets 40.62 86.5%
31 Chadormalu 13.96 49.5% 76 Minntac Pellets 40.92 88.9%
32 Jangada 14.65 49.9% 77 Nanfen 41.26 89.5%
33 West Angelas 14.69 50.6% 78 Northshore Pellets 41.63 90.2%
34 Corumbá 14.98 50.7% 79 Mont-Wright Pellets 42.05 91.4%
35 Carajás Pellets 15.04 50.8% 80 Hibbing Taconite Pellets 43.21 92.7%
36 Kudremukh 15.30 51.7% 81 Empire Mine Pellets 45.60 93.2%
37 Whyalla (Iron Duke/Duchess/Knight) 15.57 52.2% 82 Minorca Pellets 45.62 93.7%
38 Los Colorados 15.66 52.3% 83 Mikhailovsky GOK 46.10 94.8%
39 Piar Division 15.67 54.8% 84 Baiyun 48.47 95.4%
40 Beeshoek 17.16 55.7% 85 Savage River Pellets 50.13 95.8%
41 Goldsworthy (Nimingarra-Yarrie) 17.38 56.8% 86 Lebedinsky GOK Pellets 50.31 97.1%
42 Sishen 17.84 61.0% 87 Wabush Mines Pellets 55.92 97.9%
43 Cockatoo Island 18.33 61.1% 88 Mikhailovsky GOK Pellets 57.53 99.1%
44 Malmberget 19.10 61.6% 89 Qidashan 75.28 99.4%
45 Kiruna 19.12 62.1% 90 Shuichang 78.13 100.0%

——————AME Mineral Economics • Iron Ore 2007——————

A - 35
 US$/tonne

0
5
10
15
20
25
30
35
40
45
50
55
60
65
70
75
Figure A.10

0
Carajás

50
BHPB-Yandi

Mining
Robe River Iron Ore (Pannawonica)

100
Royalties
Pelletizing

Processing
HIYandi
Marandoo
Conceição

150
Cauê/Minas do Meio
Transport & Ports

Paraburdoo
Confidential: see contract at www.ame.com.au

Channar
Tom Price

200
Casa de Pedra
Alegria
Tamanduá/Capitão do Mato/Abóboras

250
Pico Complex
Mount Whaleback/OB30

A - 36
300
Nominal Terms

Piar Division

350
Sishen
2002 Iron Ore Costs - FOB

CVRD Southern System Plants Pellets

400

Cumulative Costed Production, Mt

Bailadila 5,14,11c
Alegria / Germano (Samarco) Pellets

450
Kiruna Pellets
Tilden Pellets

——————AME Mineral Economics • Iron Ore 2007——————

Carol Lake Pellets

500
Minntac Pellets
Lebedinsky GOK
Mont-Wright Pellets

550
Hibbing Taconite Pellets

Lebedinsky GOK Pellets

Mikhailovsky GOK Pellets

600
0
5
10
15
20
25
30
35
40
45
50
55
60
65
70
75
Mine Costs
Mine Costs Confidential: see contract at www.ame.com.au

Table A.17
2002 Iron Ore Costs - FOB by Company (ranked)
Nominal Terms

Costed Cash Costs, US$/tonne

Company Production Transport Pellet- Total
dry Mt Mining Processing & Ports Royalties izing FOB
Belgo-
1.1 1.19 0.96 0.96 0.39 - 3.50
Mineira Participacao Industria e Comercio Ltda
CVRD 110.1 2.21 1.09 2.48 0.38 - 6.17
Rio Tinto 101.2 3.11 0.75 2.22 0.72 - 6.79
BlueScope 1.6 1.02 2.63 2.50 0.81 - 6.96
Samitri (SA Mineração da Trinidade) 3.0 2.01 1.77 2.96 0.36 - 7.10
BHP Billiton 69.6 3.40 0.72 2.51 0.73 - 7.37
CSN 12.5 2.41 2.06 2.90 0.40 - 7.77
MBR 14.5 2.98 1.17 4.13 0.39 - 8.68
NISCO 7.1 2.40 2.12 2.63 1.90 - 9.04
OneSteel Limited 3.2 6.01 1.04 2.12 0.71 - 9.88
Kudremukh Iron Ore Co Ltd 5.2 2.65 4.51 3.02 0.07 - 10.25
CVG Ferrominera Orinoco CA 15.3 5.13 1.25 3.54 0.51 - 10.43
Assmang 5.3 4.70 1.71 4.71 - - 11.12
LKAB 6.0 6.62 2.45 3.36 - - 12.43
Kumba Resources 28.2 7.01 0.94 4.65 - - 12.61
Portman Limited 4.2 6.37 0.62 4.85 1.13 - 12.97
SNIM 9.3 3.31 1.47 6.75 1.89 - 13.42
Shougang Hierro-Peru 1.4 7.77 2.54 2.40 1.28 - 13.99
National Mineral Development Corp 14.4 1.92 2.58 10.10 0.48 - 15.08
Dofasco Inc 2.0 6.57 4.74 5.16 - - 16.47
CAEMI Mineracao e Metalurgia S.A 2.0 6.57 4.74 5.16 - - 16.47
Cia Minera del Pacifico SA 2.5 10.68 3.33 2.83 1.12 - 17.95
Severstal 0.3 7.95 6.33 5.99 - - 20.27
Ivanhoe Mines Ltd 0.0 14.12 6.06 1.79 0.13 - 22.10
Benxi Iron and Steel 3.5 15.91 5.80 5.11 - - 26.82
Metalloinvest 9.4 5.31 5.64 14.46 1.56 - 26.97
Baotou Iron and Steel 4.0 19.88 7.22 3.92 - - 31.02
Anshan Iron & Steel Group 1.8 37.68 9.22 3.91 - - 50.81
Shougang Corp 3.4 35.31 12.25 4.81 - - 52.37

Total/Averages (Non-Agglomerated) 442.0 4.06 1.49 3.41 0.57 - 9.53

CVRD Pellets 34.0 1.77 2.00 2.35 0.39 7.55 14.06

BHP Billiton Pellets 5.7 2.12 3.58 2.09 0.21 7.46 15.46
CVG Ferrominera Orinoco CA Pellets 2.3 5.13 1.25 3.54 0.51 7.44 17.87
Cia Minera del Pacifico SA Pellets 3.8 4.19 2.37 3.13 1.11 9.15 19.95
Kudremukh Iron Ore Co Ltd Pellets 3.2 2.65 4.51 3.02 0.07 10.30 20.55
Shougang Hierro-Peru Pellets 3.0 7.77 2.54 2.40 1.28 10.16 24.15
LKAB Pellets 13.8 6.62 2.60 3.21 - 12.15 24.58
National Steel Corp. Pellets 5.5 6.76 5.63 2.28 1.19 9.48 25.34
Rio Tinto Pellets 9.4 4.54 5.54 3.24 - 12.14 25.46

——————AME Mineral Economics • Iron Ore 2007——————

A - 37
Confidential: see contract at www.ame.com.au Mine Costs

Table A.17 (Continued)

2002 Iron Ore Costs - FOB by Company (ranked)
Nominal Terms

Costed Cash Costs, US$/tonne

Company Production Transport Pellet- Total
dry Mt Mining Processing & Ports Royalties izing FOB
US Steel Mining Company Pellets 14.5 7.55 5.58 2.24 1.19 9.45 26.01
Severstal Pellets 6.9 7.95 6.33 5.99 - 6.13 26.40
CAEMI Mineracao e Metalurgia S.A Pellets 3.7 6.57 4.74 5.16 - 10.80 27.27
Dofasco Inc Pellets 3.7 6.57 4.74 5.16 - 10.80 27.27
Bethlehem Steel Corp Pellets 5.4 9.27 6.79 2.47 1.19 8.88 28.60
Stelco Incorporated Pellets 1.1 9.27 6.79 2.47 1.19 8.88 28.60
Cleveland-Cliffs Incorporated Pellets 21.3 8.50 6.44 2.90 0.40 10.42 28.66
Ispat Inland Inc. Pellets 2.8 8.92 6.37 2.11 1.19 10.16 28.75
Ivanhoe Mines Ltd Pellets 2.1 14.12 6.06 1.79 0.13 10.85 32.95
Metalloinvest Pellets 8.2 5.31 5.64 14.46 1.56 6.24 33.21

Total/Averages (Agglomerated) 150.5 5.69 4.38 3.56 0.53 9.24 23.40

——————AME Mineral Economics • Iron Ore 2007——————

A - 38
Mine Costs Confidential: see contract at www.ame.com.au

Figure A.11
2002 Iron Ore Costs - FOB by Company
Nominal Terms

75 75

Pelletizing
70 70
Royalties

Transport & Ports

65 65
Processing

Mining
60 60

55 55

50 50

Cleveland-Cliffs Incorporated Pellets

Metalloinvest Pellets
45 45

US Steel Mining Company Pellets

40 40
US$/tonne

Metalloinvest
Rio Tinto Pellets
35 35
National Mineral Development Corp

LKAB Pellets

30 30
CVG Ferrominera Orinoco CA

25 25
Kumba Resources

CVRD Pellets

20 20
SNIM
BHP Billiton

15 15
MBR
Rio Tinto

CSN
CVRD

10 10

5 5

0 0
0 50 100 150 200 250 300 350 400 450 500 550

Cumulative Costed Production, Mt

——————AME Mineral Economics • Iron Ore 2007——————

A - 39
Confidential: see contract at www.ame.com.au Mine Costs

Table A.18
2002 Iron Ore Costs - FOB by Country (ranked)
Nominal Terms

Costed Cash Costs, US$/tonne

Country Production Transport Pellet- Total
dry Mt Mining Processing & Ports Royalties izing FOB
Brazil 142.7 2.30 1.21 2.69 0.39 - 6.59
New Zealand 1.6 1.02 2.63 2.50 0.81 - 6.96
Australia 173.6 3.34 0.64 2.37 0.75 - 7.10
Iran 7.1 2.40 2.12 2.63 1.90 - 9.04
Venezuela 15.3 5.13 1.25 3.54 0.51 - 10.43
South Africa 33.5 6.65 1.06 4.66 - - 12.37
Sweden 6.0 6.62 2.45 3.36 - - 12.43
Mauritania 9.3 3.31 1.47 6.75 1.89 - 13.42
India 19.6 2.11 3.09 8.21 0.37 - 13.79
Peru 1.4 7.77 2.54 2.40 1.28 - 13.99
Canada 7.0 5.69 5.09 4.33 - - 15.11
Chile 2.5 10.68 3.33 2.83 1.12 - 17.95
Russia 16.3 6.75 5.97 14.60 1.53 - 28.85
China 12.7 25.48 8.47 4.49 - - 38.44

Total/Averages (Non-Agglomerated) 448.6 4.13 1.56 3.58 0.58 - 9.85

Brazil Pellets 39.7 1.82 2.22 2.31 0.37 7.54 14.26

Venezuela Pellets 2.3 5.13 1.25 3.54 0.51 7.44 17.87
Chile Pellets 3.8 4.19 2.37 3.13 1.11 9.15 19.95
India Pellets 3.2 2.65 4.51 3.02 0.07 10.30 20.55
Peru Pellets 3.0 7.77 2.54 2.40 1.28 10.16 24.15
Sweden Pellets 13.8 6.62 2.60 3.21 - 12.15 24.58
USA Pellets 50.3 8.04 5.97 2.20 0.97 9.43 26.61
Canada Pellets 21.4 6.03 5.87 4.48 - 11.95 28.33
Russia Pellets 23.0 7.28 6.12 12.19 1.10 6.21 32.90
Australia Pellets 2.1 14.12 6.06 1.79 0.13 10.85 32.95

Total/Averages (Agglomerated) 162.6 5.87 4.54 4.08 0.60 9.09 24.18

——————AME Mineral Economics • Iron Ore 2007——————

A - 40
Mine Costs Confidential: see contract at www.ame.com.au

Figure A.12
2002 Iron Ore Costs - FOB by Country
Nominal Terms

75 75

Pelletizing
70 70
Royalties

Transport & Ports

65 65
Processing

Mining
60 60

55 55

50 50

45 45

China
Russia Pellets
40 40
US$/tonne

Canada Pellets
35 35

USA Pellets

Russia
Sweden Pellets

30 30

25 25
Brazil Pellets
Mauritania
South Africa

20 20
India
Venezuela

15 15
Australia
Brazil

10 10

5 5

0 0
0 50 100 150 200 250 300 350 400 450 500 550 600

Cumulative Costed Production, Mt

——————AME Mineral Economics • Iron Ore 2007——————

A - 41
Confidential: see contract at www.ame.com.au Mine Costs

Table A.19
2002 Iron Ore Costs - CIF Europe (alphabetically)
Nominal Terms

Costed Cash Costs, US¢/MTU

Mine Country Production Freight CIF
Mt Fe FOB Rate Europe
Agua Limpa/Cururu Brazil 1.9 11.24 7.63 18.87
Águas Claras Brazil 1.0 10.82 7.43 18.25
Alegria Brazil 6.3 12.01 7.13 19.14
Alegria / Germano (Samarco) Brazil 0.9 11.93 6.98 18.91
Alegria / Germano (Samarco) Pellets Brazil 7.5 23.34 7.07 30.41
Area C Australia 0.4 29.15 10.05 39.20
Bailadila 5,14,11c India 7.7 22.48 9.36 31.84
Beeshoek South Africa 3.5 17.16 9.03 26.19
BHPB-OB23/25 Australia 3.3 12.04 9.98 22.02
BHPB-Yandi Australia 18.8 8.88 10.64 19.52
Brucutu Brazil 0.1 24.80 7.73 32.53
Capanema * Brazil 1.7 10.53 7.66 18.19
Carajás Brazil 32.6 6.46 6.08 12.54
Carajás Pellets Brazil 0.5 15.04 6.07 21.11
Carol Lake Canada 2.0 20.50 7.19 27.69
Carol Lake Pellets Canada 6.1 39.17 7.19 46.36
Casa de Pedra Brazil 8.3 11.73 7.26 18.99
Cauê/Minas do Meio * Brazil 5.8 10.20 7.41 17.61
Channar Australia 6.4 11.90 12.44 24.34
Cockatoo Island Australia 0.2 18.33 11.71 30.04
Conceição * Brazil 5.7 10.00 7.40 17.40
Córrego do Feijão Brazil 4.0 13.49 7.98 21.47
Córrego do Meio Brazil 0.7 13.18 7.57 20.75
Corumbá Brazil 0.5 14.98 15.67 30.65
CVRD Southern System Plants Pellets Brazil 15.1 20.56 7.40 27.96
Donimalai India 1.8 24.63 9.50 34.13
Empire Mine Pellets USA 2.3 45.60 - 45.60
Fazendão Brazil 0.5 11.07 7.41 18.48
Goldsworthy (Nimingarra-Yarrie) Australia 4.4 17.38 9.82 27.20
Gongo Soco * Brazil 3.1 9.57 7.57 17.14
Guelb El Rhein Mauritania 2.5 21.43 3.80 25.23
Hibbing Taconite Pellets USA 5.1 43.21 - 43.21
HIYandi Australia 9.7 9.75 13.46 23.21
Jangada Brazil 1.6 14.65 7.25 21.90
Jimblebar Australia 3.2 13.37 9.98 23.35
Karelsky Okatysh Russia 0.2 29.81 3.65 33.46
Karelsky Okatysh Pellets Russia 4.5 40.62 3.82 44.44
Kedia d'Ijill Mauritania 1.5 20.85 3.90 24.75
Keetac Pellets USA 3.6 38.45 - 38.45
Kiruna Sweden 1.9 19.12 2.19 21.31
Kiruna Pellets Sweden 6.6 36.21 2.12 38.33
Koolyanobbing Australia 2.5 20.32 11.07 31.39

——————AME Mineral Economics • Iron Ore 2007——————

A - 42
Mine Costs Confidential: see contract at www.ame.com.au

Table A.19 (Continued)

2002 Iron Ore Costs - CIF Europe (alphabetically)
Nominal Terms

Costed Cash Costs, US¢/MTU

Mine Country Production Freight CIF
Mt Fe FOB Rate Europe
Kudremukh India 3.5 15.30 13.53 28.83
Kudremukh Pellets India 2.1 31.14 13.73 44.87
Lebedinsky GOK Russia 6.5 39.08 9.85 48.93
Lebedinsky GOK Pellets Russia 5.4 50.31 10.30 60.61
Los Colorados Chile 0.4 15.66 12.77 28.43
Los Colorados Pellets Chile 2.5 30.46 13.46 43.92
Malmberget Sweden 1.9 19.10 2.18 21.28
Malmberget Pellets Sweden 2.6 37.86 2.12 39.98
Marandoo Australia 5.8 9.02 12.29 21.31
Marcona Peru 0.9 20.13 12.89 33.02
Marcona Pellets Peru 2.0 36.59 13.57 50.16
M'Haoudat Mauritania 2.0 19.48 3.91 23.39
Mikhailovsky GOK Russia 4.5 46.10 9.80 55.90
Mikhailovsky GOK Pellets Russia 5.2 57.53 10.23 67.76
Minntac Pellets USA 9.2 40.92 - 40.92
Minorca Pellets USA 1.8 45.62 - 45.62
Mont-Wright Canada 2.6 25.33 4.62 29.95
Mont-Wright Pellets Canada 4.9 42.05 4.62 46.67
Mount Whaleback/OB30 Australia 12.3 13.75 9.77 23.52
Northshore Pellets USA 2.7 41.63 - 41.63
Paraburdoo Australia 5.5 11.59 12.29 23.88
Piar Division Venezuela 10.2 15.67 6.65 22.32
Piar Division Pellets Venezuela 1.5 27.08 6.71 33.79
Pico Complex Brazil 7.3 13.13 7.66 20.79
Robe River Iron Ore (Pannawonica) Australia 16.4 9.79 11.41 21.20
Romeral, El Chile 1.3 29.69 13.27 42.96
Savage River Australia 0.0 32.82 11.62 44.44
Savage River Pellets Australia 1.4 50.13 11.90 62.03
Segredo/João Pereira Brazil 0.5 12.49 7.35 19.84
Segredo/João Pereira Pellets Brazil 2.8 25.45 7.41 32.86
Sishen South Africa 17.2 17.84 8.80 26.64
Taharoa New Zealand 0.9 12.21 13.74 25.95
Tamanduá/Capitão do Mato/Abóboras Brazil 9.6 12.64 7.45 20.09
Tilden Pellets USA 4.8 40.37 - 40.37
Timbopeba * Brazil 1.9 11.59 7.50 19.09
Tom Price Australia 12.9 11.88 12.28 24.16
United Taconite Pellets USA 2.7 39.28 - 39.28
Wabush Mines Pellets Canada 2.9 55.92 7.24 63.16

——————AME Mineral Economics • Iron Ore 2007——————

A - 43
Confidential: see contract at www.ame.com.au Mine Costs

Table A.19 (Continued)

2002 Iron Ore Costs - CIF Europe (alphabetically)
Nominal Terms

Costed Cash Costs, US¢/MTU

Mine Country Production Freight CIF
Mt Fe FOB Rate Europe
West Angelas Australia 2.7 14.69 10.63 25.32
Whyalla (Iron Duke/Duchess/Knight) Australia 2.0 15.57 13.24 28.81

Total/Averages 379.4 20.41 7.93 28.35

* Production shown is saleable ore, excluding pellet feed to CVRD Southern System Pellet Plants.

——————AME Mineral Economics • Iron Ore 2007——————

A - 44
Mine Costs Confidential: see contract at www.ame.com.au

Table A.20
2002 Iron Ore Costs - CIF Europe (ranked)
Nominal Terms
Rank Mine Cost %-ile Rank Mine Cost %-ile
¢/MTU Rank ¢/MTU Rank
1 Carajás 12.54 8.6% 42 CVRD Southern System Plants 27.96 66.9%
2 Gongo Soco 17.14 9.4% 43 Los Colorados 28.43 67.0%
3 Conceição 17.40 10.9% 44 Whyalla (Iron Duke/Duchess/Knight) 28.81 67.5%
4 Cauê/Minas do Meio 17.61 12.4% 45 Kudremukh 28.83 68.4%
5 Capanema 18.19 12.9% 46 Mont-Wright 29.95 69.1%
6 Águas Claras 18.25 13.1% 47 Cockatoo Island 30.04 69.2%
7 Fazendão 18.48 13.3% 48 Alegria / Germano (Samarco) Pellets 30.41 71.2%
8 Agua Limpa/Cururu 18.87 13.8% 49 Corumbá 30.65 71.3%
9 Alegria / Germano (Samarco) 18.91 14.0% 50 Koolyanobbing 31.39 72.0%
10 Casa de Pedra 18.99 16.2% 51 Bailadila 5,14,11c 31.84 74.0%
11 Timbopeba 19.09 16.7% 52 Brucutu 32.53 74.0%
12 Alegria 19.14 18.3% 53 Segredo/João Pereira Pellets 32.86 74.7%
13 BHPB-Yandi 19.52 23.3% 54 Marcona 33.02 75.0%
14 Segredo/João Pereira 19.84 23.4% 55 Karelsky Okatysh 33.46 75.0%
15 Tamanduá/Capitão do Mato/Abóboras 20.09 25.9% 56 Piar Division Pellets 33.79 75.5%
16 Córrego do Meio 20.75 26.1% 57 Donimalai 34.13 75.9%
17 Pico Complex 20.79 28.1% 58 Kiruna Pellets 38.33 77.7%
18 Carajás Pellets 21.11 28.2% 59 Keetac Pellets 38.45 78.6%
19 Robe River Iron Ore (Pannawonica) 21.20 32.5% 60 Area C 39.20 78.7%
20 Malmberget 21.28 33.0% 61 United Taconite Pellets 39.28 79.5%
21 Kiruna 21.31 33.5% 62 Malmberget Pellets 39.98 80.1%
22 Marandoo 21.31 35.1% 63 Tilden Pellets 40.37 81.4%
23 Córrego do Feijão 21.47 36.1% 64 Minntac Pellets 40.92 83.9%
24 Jangada 21.90 36.5% 65 Northshore Pellets 41.63 84.6%
25 BHPB-OB23/25 22.02 37.4% 66 Romeral, El 42.96 84.9%
26 Piar Division 22.32 40.1% 67 Hibbing Taconite Pellets 43.21 86.3%
27 HIYandi 23.21 42.7% 68 Los Colorados Pellets 43.92 86.9%
28 Jimblebar 23.35 43.5% 69 Karelsky Okatysh Pellets 44.44 88.1%
29 M'Haoudat 23.39 44.0% 70 Savage River 44.44 88.1%
30 Mount Whaleback/OB30 23.52 47.3% 71 Kudremukh Pellets 44.87 88.7%
31 Paraburdoo 23.88 48.7% 72 Empire Mine Pellets 45.60 89.3%
32 Tom Price 24.16 52.1% 73 Minorca Pellets 45.62 89.7%
33 Channar 24.34 53.8% 74 Carol Lake Pellets 46.36 91.3%
34 Kedia d'Ijill 24.75 54.2% 75 Mont-Wright Pellets 46.67 92.6%
35 Guelb El Rhein 25.23 54.9% 76 Lebedinsky GOK 48.93 94.3%
36 West Angelas 25.32 55.5% 77 Marcona Pellets 50.16 94.9%
37 Taharoa 25.95 55.8% 78 Mikhailovsky GOK 55.90 96.1%
38 Beeshoek 26.19 56.7% 79 Lebedinsky GOK Pellets 60.61 97.5%
39 Sishen 26.64 61.2% 80 Savage River Pellets 62.03 97.9%
40 Goldsworthy (Nimingarra-Yarrie) 27.20 62.4% 81 Wabush Mines Pellets 63.16 98.6%
41 Carol Lake 27.69 62.9% 82 Mikhailovsky GOK Pellets 67.76 100.0%

——————AME Mineral Economics • Iron Ore 2007——————

A - 45
 US¢/MTU

0
5
10
15
20
25
30
35
40
45
50
55
60
65
70
75
80
85
90
95
100
105
110
115
120
125
130
135
140
Figure A.13

0
Carajás

Conceição
Cauê/Minas do Meio

FOB

50
Casa de Pedra
Alegria
Freight Rate

BHPB-Yandi
Tamanduá/Capitão do Mato/Abóboras
Pico Complex

100
Confidential: see contract at www.ame.com.au

Robe River Iron Ore (Pannawonica)

Marandoo

Piar Division

150
HIYandi

Mount Whaleback/OB30
Paraburdoo

A - 46
Tom Price
Nominal Terms

Channar

200
Sishen
2002 Iron Ore Costs - CIF Europe

CVRD Southern System Plants Pellets

250

Cumulative Costed Production, Mt Fe

Alegria / Germano (Samarco) Pellets
Bailadila 5,14,11c
Kiruna Pellets

300

——————AME Mineral Economics • Iron Ore 2007——————

Tilden Pellets
Minntac Pellets
Hibbing Taconite Pellets

Carol Lake Pellets

Mont-Wright Pellets

350
Lebedinsky GOK
Lebedinsky GOK Pellets
Mikhailovsky GOK Pellets

0
5
10
15
20
25
30
35
40
45
50
55
60
65
70
75
80
85
90
95
100
105
110
115
120
125
130
135
140
Mine Costs
Mine Costs Confidential: see contract at www.ame.com.au

Table A.21
2002 Iron Ore Costs - CIF Europe by Company (ranked)
Nominal Terms

Costed Cash Costs, US¢/MTU

Company Production Freight CIF
Mt Fe FOB Rate Europe
CVRD 73.0 9.30 6.85 16.15
Samitri (SA Mineração da Trinidade) 1.9 11.24 7.63 18.87
CSN 8.3 11.73 7.26 18.99
MBR 9.7 12.90 7.51 20.41
LKAB 3.9 19.11 2.19 21.30
BHP Billiton 42.8 11.97 10.16 22.13
CVG Ferrominera Orinoco CA 10.2 15.67 6.65 22.32
Rio Tinto 61.8 11.12 12.05 23.17
SNIM 6.0 20.64 3.86 24.50
Kumba Resources 18.7 19.01 5.53 24.55
BlueScope 0.9 12.21 13.74 25.95
Assmang 3.5 17.16 9.03 26.19
OneSteel Limited 2.0 15.57 13.24 28.81
Kudremukh Iron Ore Co Ltd 3.5 15.30 13.53 28.83
CAEMI Mineracao e Metalurgia S.A 1.3 25.33 4.62 29.95
Dofasco Inc 1.3 25.33 4.62 29.95
Portman Limited 2.7 20.19 11.11 31.30
National Mineral Development Corp 9.5 22.88 9.39 32.27
Shougang Hierro-Peru 0.9 20.13 12.89 33.02
Severstal 0.2 29.81 3.65 33.46
Cia Minera del Pacifico SA 1.7 26.70 13.16 39.86
Ivanhoe Mines Ltd 0.0 32.82 11.62 44.44
Metalloinvest 6.5 39.08 9.85 48.93

Total/Averages (Non-Agglomerated) 270.3 13.52 8.80 22.31

CVRD Pellets 22.2 21.54 7.32 28.86

BHP Billiton Pellets 3.8 23.34 7.07 30.41
CVG Ferrominera Orinoco CA Pellets 1.5 27.08 6.71 33.79
National Steel Corp. Pellets 3.6 38.45 - 38.45
LKAB Pellets 9.3 36.68 2.12 38.80
US Steel Mining Company Pellets 9.2 40.92 - 40.92
Bethlehem Steel Corp Pellets 3.6 43.21 - 43.21
Stelco Incorporated Pellets 0.7 43.21 - 43.21
Cia Minera del Pacifico SA Pellets 2.5 30.46 13.46 43.92
Severstal Pellets 4.5 40.62 3.82 44.44
Kudremukh Iron Ore Co Ltd Pellets 2.1 31.14 13.73 44.87
Ispat Inland Inc. Pellets 1.8 45.62 - 45.62
Rio Tinto Pellets 6.1 39.17 7.19 46.36
Cleveland-Cliffs Incorporated Pellets 13.6 45.02 1.55 46.57
CAEMI Mineracao e Metalurgia S.A Pellets 2.4 42.05 4.62 46.67

——————AME Mineral Economics • Iron Ore 2007——————

A - 47
Confidential: see contract at www.ame.com.au Mine Costs

Table A.21 (Continued)

2002 Iron Ore Costs - CIF Europe by Company (ranked)
Nominal Terms

Costed Cash Costs, US¢/MTU

Company Production Freight CIF
Mt Fe FOB Rate Europe
Dofasco Inc Pellets 2.4 42.05 4.62 46.67
Shougang Hierro-Peru Pellets 2.0 36.59 13.57 50.16
Metalloinvest Pellets 5.4 50.31 10.30 60.61
Ivanhoe Mines Ltd Pellets 1.4 50.13 11.90 62.03

Total/Averages (Agglomerated) 98.0 35.93 4.95 40.87

——————AME Mineral Economics • Iron Ore 2007——————

A - 48
Mine Costs Confidential: see contract at www.ame.com.au

Figure A.14
2002 Iron Ore Costs - CIF Europe by Company
Nominal Terms

140 140
135 Freight Rate 135
130 FOB 130
125 125
120 120
115 115
110 110
105 105
100 100
95 95
90 90
85 85

Metalloinvest Pellets
Cleveland-Cliffs Incorporated Pellets
80 80
75 75
US¢/MTU

US Steel Mining Company Pellets

70 70
National Mineral Development Corp
65 65

Rio Tinto Pellets

Metalloinvest
60 60
LKAB Pellets

55 55
CVG Ferrominera Orinoco CA

50 50
CVRD Pellets

45 45
Kumba Resources

40 40
BHP Billiton

Rio Tinto

35 35
SNIM

30 30
MBR
CSN
CVRD

25 25
20 20
15 15
10 10
5 5
0 0
0 50 100 150 200 250 300 350

Cumulative Costed Production, Mt Fe

——————AME Mineral Economics • Iron Ore 2007——————

A - 49
Confidential: see contract at www.ame.com.au Mine Costs

Table A.22
2002 Iron Ore Costs - CIF Europe by Country (ranked)
Nominal Terms

Costed Cash Costs, US¢/MTU

Country Production Freight CIF
Mt Fe FOB Rate Europe
Brazil 93.9 9.97 7.02 16.99
Sweden 3.9 19.11 2.19 21.30
Venezuela 10.2 15.67 6.65 22.32
Australia 106.4 11.58 11.38 22.96
Mauritania 6.0 20.64 3.86 24.50
New Zealand 0.9 12.21 13.74 25.95
South Africa 20.7 17.73 8.84 26.56
Canada 4.6 23.24 5.73 28.97
India 13.0 20.84 10.50 31.34
Peru 0.9 20.13 12.89 33.02
Chile 1.7 26.70 13.16 39.86
Russia 11.3 41.72 9.71 51.43

Total/Averages (Non-Agglomerated) 273.4 13.95 9.04 22.99

Brazil Pellets 25.9 21.80 7.28 29.08

Venezuela Pellets 1.5 27.08 6.71 33.79
Sweden Pellets 9.3 36.68 2.12 38.80
Chile Pellets 2.5 30.46 13.46 43.92
India Pellets 2.1 31.14 13.73 44.87
Canada Pellets 13.9 43.69 6.30 50.00
Peru Pellets 2.0 36.59 13.57 50.16
Russia Pellets 15.1 49.94 8.36 58.30
Australia Pellets 1.4 50.13 11.90 62.03

Total/Averages (Agglomerated) 73.7 35.17 7.31 42.48

——————AME Mineral Economics • Iron Ore 2007——————

A - 50
Mine Costs Confidential: see contract at www.ame.com.au

Figure A.15
2002 Iron Ore Costs - CIF Europe by Country
Nominal Terms

140 140
135 Freight Rate 135
130 FOB 130
125 125
120 120
115 115
110 110
105 105
100 100
95 95
90 90
85 85
80 80
75 75

Russia Pellets
US¢/MTU

70 70

Canada Pellets
65 65

Russia
60 Sweden Pellets 60
55 55
50 50
45 45
Brazil Pellets
South Africa

India

40 40
Canada
Mauritania
Venezuela

Australia

35 35
30 30
Brazil

25 25
20 20
15 15
10 10
5 5
0 0
0 50 100 150 200 250 300

Cumulative Costed Production, Mt Fe

——————AME Mineral Economics • Iron Ore 2007——————

A - 51
Confidential: see contract at www.ame.com.au Mine Costs

Table A.23
2002 Iron Ore Costs - CIF Japan (alphabetically)
Nominal Terms

Costed Cash Costs, US¢/MTU

Mine Country Production Freight CIF
Mt Fe FOB Rate Japan
Agua Limpa/Cururu Brazil 1.9 11.24 12.16 23.40
Águas Claras Brazil 1.0 10.82 11.48 22.30
Alegria Brazil 6.3 12.01 11.36 23.37
Alegria / Germano (Samarco) Brazil 0.9 11.93 12.43 24.36
Alegria / Germano (Samarco) Pellets Brazil 7.5 23.34 12.58 35.92
Area C Australia 0.4 29.15 5.57 34.72
Bailadila 5,14,11c India 7.7 22.48 7.17 29.65
Beeshoek South Africa 3.5 17.16 10.42 27.58
BHPB-OB23/25 Australia 3.3 12.04 5.53 17.57
BHPB-Yandi Australia 18.8 8.88 5.90 14.78
Brucutu Brazil 0.1 24.80 12.32 37.12
Capanema * Brazil 1.7 10.53 12.20 22.73
Carajás Brazil 32.6 6.46 11.54 18.00
Carajás Pellets Brazil 0.5 15.04 11.51 26.55
Carol Lake Canada 2.0 20.50 10.75 31.25
Carol Lake Pellets Canada 6.1 39.17 10.75 49.92
Casa de Pedra Brazil 8.3 11.73 11.58 23.31
Cauê/Minas do Meio * Brazil 5.8 10.20 11.81 22.01
Channar Australia 6.4 11.90 5.54 17.44
Cockatoo Island Australia 0.2 18.33 4.95 23.28
Conceição * Brazil 5.7 10.00 11.80 21.80
Córrego do Feijão Brazil 4.0 13.49 12.14 25.63
Córrego do Meio Brazil 0.7 13.18 12.07 25.25
Corumbá Brazil 0.5 14.98 21.06 36.04
CVRD Southern System Plants Pellets Brazil 15.1 20.56 11.80 32.36
Donimalai India 1.8 24.63 7.28 31.91
Empire Mine Pellets USA 2.3 45.60 - 45.60
Fazendão Brazil 0.5 11.07 11.81 22.88
Goldsworthy (Nimingarra-Yarrie) Australia 4.4 17.38 5.44 22.82
Gongo Soco * Brazil 3.1 9.57 12.07 21.64
Guelb El Rhein Mauritania 2.5 21.43 9.68 31.11
Hibbing Taconite Pellets USA 5.1 43.21 - 43.21
HIYandi Australia 9.7 9.75 5.99 15.74
Jangada Brazil 1.6 14.65 11.56 26.21
Jimblebar Australia 3.2 13.37 5.53 18.90
Karelsky Okatysh Russia 0.2 29.81 15.81 45.62
Karelsky Okatysh Pellets Russia 4.5 40.62 16.54 57.16
Kedia d'Ijill Mauritania 1.5 20.85 9.94 30.79
Keetac Pellets USA 3.6 38.45 - 38.45
Kiruna Sweden 1.9 19.12 9.82 28.94
Kiruna Pellets Sweden 6.6 36.21 9.52 45.73
Koolyanobbing Australia 2.5 20.32 7.31 27.63

——————AME Mineral Economics • Iron Ore 2007——————

A - 52
Mine Costs Confidential: see contract at www.ame.com.au

Table A.23 (Continued)

2002 Iron Ore Costs - CIF Japan (alphabetically)
Nominal Terms

Costed Cash Costs, US¢/MTU

Mine Country Production Freight CIF
Mt Fe FOB Rate Japan
Kudremukh India 3.5 15.30 11.48 26.78
Kudremukh Pellets India 2.1 31.14 11.65 42.79
Lebedinsky GOK Russia 6.5 39.08 16.60 55.68
Lebedinsky GOK Pellets Russia 5.4 50.31 17.36 67.67
Los Colorados Chile 0.4 15.66 12.64 28.30
Los Colorados Pellets Chile 2.5 30.46 13.32 43.78
Malmberget Sweden 1.9 19.10 9.81 28.91
Malmberget Pellets Sweden 2.6 37.86 9.52 47.38
Marandoo Australia 5.8 9.02 5.47 14.49
Marcona Peru 0.9 20.13 11.89 32.02
Marcona Pellets Peru 2.0 36.59 12.52 49.11
M'Haoudat Mauritania 2.0 19.48 9.94 29.42
Mikhailovsky GOK Russia 4.5 46.10 16.50 62.60
Mikhailovsky GOK Pellets Russia 5.2 57.53 17.23 74.76
Minntac Pellets USA 9.2 40.92 - 40.92
Minorca Pellets USA 1.8 45.62 - 45.62
Mont-Wright Canada 2.6 25.33 11.27 36.60
Mont-Wright Pellets Canada 4.9 42.05 11.29 53.34
Mount Whaleback/OB30 Australia 12.3 13.75 5.42 19.17
Northshore Pellets USA 2.7 41.63 - 41.63
Paraburdoo Australia 5.5 11.59 5.47 17.06
Piar Division Venezuela 10.2 15.67 11.78 27.45
Piar Division Pellets Venezuela 1.5 27.08 11.89 38.97
Pico Complex Brazil 7.3 13.13 11.83 24.96
Robe River Iron Ore (Pannawonica) Australia 16.4 9.79 6.38 16.17
Romeral, El Chile 1.3 29.69 13.26 42.95
Savage River Australia 0.0 32.82 7.35 40.17
Savage River Pellets Australia 1.4 50.13 7.53 57.66
Segredo/João Pereira Brazil 0.5 12.49 11.71 24.20
Segredo/João Pereira Pellets Brazil 2.8 25.45 11.81 37.26
Sishen South Africa 17.2 17.84 10.16 28.00
Taharoa New Zealand 0.9 12.21 8.51 20.72
Tamanduá/Capitão do Mato/Abóboras Brazil 9.6 12.64 11.50 24.14
Tilden Pellets USA 4.8 40.37 - 40.37
Timbopeba * Brazil 1.9 11.59 11.95 23.54
Tom Price Australia 12.9 11.88 5.46 17.34
United Taconite Pellets USA 2.7 39.28 - 39.28
Wabush Mines Pellets Canada 2.9 55.92 10.84 66.76

——————AME Mineral Economics • Iron Ore 2007——————

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Confidential: see contract at www.ame.com.au Mine Costs

Table A.23 (Continued)

2002 Iron Ore Costs - CIF Japan (alphabetically)
Nominal Terms

Costed Cash Costs, US¢/MTU

Mine Country Production Freight CIF
Mt Fe FOB Rate Japan
West Angelas Australia 2.7 14.69 5.95 20.64
Whyalla (Iron Duke/Duchess/Knight) Australia 2.0 15.57 9.38 24.95

Total/Averages 379.4 20.41 9.12 29.53

* Production shown is saleable ore, excluding pellet feed to CVRD Southern System Pellet Plants.

——————AME Mineral Economics • Iron Ore 2007——————

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Mine Costs Confidential: see contract at www.ame.com.au

Table A.24
2002 Iron Ore Costs - CIF Japan (ranked)
Nominal Terms
Rank Mine Cost %-ile Rank Mine Cost %-ile
¢/MTU Rank ¢/MTU Rank
1 Marandoo 14.49 1.5% 42 Kiruna 28.94 63.1%
2 BHPB-Yandi 14.78 6.5% 43 M'Haoudat 29.42 63.6%
3 HIYandi 15.74 9.0% 44 Bailadila 5,14,11c 29.65 65.6%
4 Robe River Iron Ore (Pannawonica) 16.17 13.4% 45 Kedia d'Ijill 30.79 66.0%
5 Paraburdoo 17.06 14.8% 46 Guelb El Rhein 31.11 66.7%
6 Tom Price 17.34 18.2% 47 Carol Lake 31.25 67.2%
7 Channar 17.44 19.9% 48 Donimalai 31.91 67.7%
8 BHPB-OB23/25 17.57 20.7% 49 Marcona 32.02 67.9%
9 Carajás 18.00 29.4% 50 CVRD Southern System Plants 32.36 71.9%
10 Jimblebar 18.90 30.2% 51 Area C 34.72 72.0%
11 Mount Whaleback/OB30 19.17 33.4% 52 Alegria / Germano (Samarco) Pellets 35.92 74.0%
12 West Angelas 20.64 34.1% 53 Corumbá 36.04 74.1%
13 Taharoa 20.72 34.4% 54 Mont-Wright 36.60 74.8%
14 Gongo Soco 21.64 35.2% 55 Brucutu 37.12 74.8%
15 Conceição 21.80 36.7% 56 Segredo/João Pereira Pellets 37.26 75.6%
16 Cauê/Minas do Meio 22.01 38.2% 57 Keetac Pellets 38.45 76.5%
17 Águas Claras 22.30 38.5% 58 Piar Division Pellets 38.97 76.9%
18 Capanema 22.73 38.9% 59 United Taconite Pellets 39.28 77.6%
19 Goldsworthy (Nimingarra-Yarrie) 22.82 40.1% 60 Savage River 40.17 77.7%
20 Fazendão 22.88 40.2% 61 Tilden Pellets 40.37 78.9%
21 Cockatoo Island 23.28 40.2% 62 Minntac Pellets 40.92 81.4%
22 Casa de Pedra 23.31 42.4% 63 Northshore Pellets 41.63 82.1%
23 Alegria 23.37 44.1% 64 Kudremukh Pellets 42.79 82.6%
24 Agua Limpa/Cururu 23.40 44.6% 65 Romeral, El 42.95 83.0%
25 Timbopeba 23.54 45.1% 66 Hibbing Taconite Pellets 43.21 84.3%
26 Tamanduá/Capitão do Mato/Abóboras 24.14 47.6% 67 Los Colorados Pellets 43.78 85.0%
27 Segredo/João Pereira 24.20 47.7% 68 Empire Mine Pellets 45.60 85.6%
28 Alegria / Germano (Samarco) 24.36 48.0% 69 Karelsky Okatysh 45.62 85.7%
29 Whyalla (Iron Duke/Duchess/Knight) 24.95 48.5% 70 Minorca Pellets 45.62 86.1%
30 Pico Complex 24.96 50.4% 71 Kiruna Pellets 45.73 87.9%
31 Córrego do Meio 25.25 50.6% 72 Malmberget Pellets 47.38 88.6%
32 Córrego do Feijão 25.63 51.7% 73 Marcona Pellets 49.11 89.1%
33 Jangada 26.21 52.1% 74 Carol Lake Pellets 49.92 90.7%
34 Carajás Pellets 26.55 52.2% 75 Mont-Wright Pellets 53.34 92.0%
35 Kudremukh 26.78 53.1% 76 Lebedinsky GOK 55.68 93.7%
36 Piar Division 27.45 55.8% 77 Karelsky Okatysh Pellets 57.16 94.9%
37 Beeshoek 27.58 56.7% 78 Savage River Pellets 57.66 95.2%
38 Koolyanobbing 27.63 57.4% 79 Mikhailovsky GOK 62.60 96.4%
39 Sishen 28.00 61.9% 80 Wabush Mines Pellets 66.76 97.2%
40 Los Colorados 28.30 62.0% 81 Lebedinsky GOK Pellets 67.67 98.6%
41 Malmberget 28.91 62.6% 82 Mikhailovsky GOK Pellets 74.76 100.0%

——————AME Mineral Economics • Iron Ore 2007——————

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 US¢/MTU

0
5
10
15
20
25
30
35
40
45
50
55
60
65
70
75
80
85
90
95
100
105
110
115
120
125
130
135
140
Figure A.16

0
BHPB-Yandi
HIYandi
Robe River Iron Ore (Pannawonica)

FOB

50
Paraburdoo
Tom Price
Channar
Freight Rate

Carajás

100
Confidential: see contract at www.ame.com.au

Mount Whaleback/OB30

Conceição
Cauê/Minas do Meio

150
Casa de Pedra
Alegria
Tamanduá/Capitão do Mato/Abóboras

A - 56
Pico Complex
Nominal Terms

200
Piar Division

Sishen
2002 Iron Ore Costs - CIF Japan

Bailadila 5,14,11c

250

Cumulative Costed Production, Mt Fe

CVRD Southern System Plants Pellets
Alegria / Germano (Samarco) Pellets

Tilden Pellets

300

——————AME Mineral Economics • Iron Ore 2007——————

Minntac Pellets
Hibbing Taconite Pellets
Kiruna Pellets
Carol Lake Pellets
Mont-Wright Pellets
Lebedinsky GOK

350
Lebedinsky GOK Pellets

0
5
10
15
20
25
30
35
40
45
50
55
60
65
70
75
80
85
90
95
100
105
110
115
120
125
130
135
140
Mine Costs
Mine Costs Confidential: see contract at www.ame.com.au

Table A.25
2002 Iron Ore Costs - CIF Japan by Company (ranked)
Nominal Terms

Costed Cash Costs, US¢/MTU

Company Production Freight CIF
Mt Fe FOB Rate Japan
Rio Tinto 61.8 11.12 6.12 17.24
BHP Billiton 42.8 11.97 5.72 17.69
BlueScope 0.9 12.21 8.51 20.72
CVRD 73.0 9.30 11.67 20.97
CSN 8.3 11.73 11.58 23.31
Samitri (SA Mineração da Trinidade) 1.9 11.24 12.16 23.40
MBR 9.7 12.90 11.63 24.52
OneSteel Limited 2.0 15.57 9.38 24.95
Kumba Resources 18.7 19.01 6.79 25.80
Kudremukh Iron Ore Co Ltd 3.5 15.30 11.48 26.78
Portman Limited 2.7 20.19 7.15 27.34
CVG Ferrominera Orinoco CA 10.2 15.67 11.78 27.45
Assmang 3.5 17.16 10.42 27.58
LKAB 3.9 19.11 9.82 28.93
National Mineral Development Corp 9.5 22.88 7.19 30.08
SNIM 6.0 20.64 9.83 30.47
Shougang Hierro-Peru 0.9 20.13 11.89 32.02
Dofasco Inc 1.3 25.33 11.27 36.60
CAEMI Mineracao e Metalurgia S.A 1.3 25.33 11.27 36.60
Cia Minera del Pacifico SA 1.7 26.70 13.13 39.83
Ivanhoe Mines Ltd 0.0 32.82 7.35 40.17
Severstal 0.2 29.81 15.81 45.62
Metalloinvest 6.5 39.08 16.60 55.68

Total/Averages (Non-Agglomerated) 270.3 13.52 8.94 22.45

CVRD Pellets 22.2 21.54 11.93 33.47

BHP Billiton Pellets 3.8 23.34 12.58 35.92
National Steel Corp. Pellets 3.6 38.45 - 38.45
CVG Ferrominera Orinoco CA Pellets 1.5 27.08 11.89 38.97
US Steel Mining Company Pellets 9.2 40.92 - 40.92
Kudremukh Iron Ore Co Ltd Pellets 2.1 31.14 11.65 42.79
Bethlehem Steel Corp Pellets 3.6 43.21 - 43.21
Stelco Incorporated Pellets 0.7 43.21 - 43.21
Cia Minera del Pacifico SA Pellets 2.5 30.46 13.32 43.78
Ispat Inland Inc. Pellets 1.8 45.62 - 45.62
LKAB Pellets 9.3 36.68 9.52 46.20
Cleveland-Cliffs Incorporated Pellets 13.6 45.02 2.32 47.34
Shougang Hierro-Peru Pellets 2.0 36.59 12.52 49.11
Rio Tinto Pellets 6.1 39.17 10.75 49.92
Dofasco Inc Pellets 2.4 42.05 11.29 53.34

——————AME Mineral Economics • Iron Ore 2007——————

A - 57
Confidential: see contract at www.ame.com.au Mine Costs

Table A.25 (Continued)

2002 Iron Ore Costs - CIF Japan by Company (ranked)
Nominal Terms

Costed Cash Costs, US¢/MTU

Company Production Freight CIF
Mt Fe FOB Rate Japan
CAEMI Mineracao e Metalurgia S.A Pellets 2.4 42.05 11.29 53.34
Severstal Pellets 4.5 40.62 16.54 57.16
Ivanhoe Mines Ltd Pellets 1.4 50.13 7.53 57.66
Metalloinvest Pellets 5.4 50.31 17.36 67.67

Total/Averages (Agglomerated) 98.0 35.93 8.48 44.41

——————AME Mineral Economics • Iron Ore 2007——————

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Mine Costs Confidential: see contract at www.ame.com.au

Figure A.17
2002 Iron Ore Costs - CIF Japan by Company
Nominal Terms

140 140
135 Freight Rate 135
130 FOB 130
125 125
120 120
115 115
110 110
105 105
100 100
95 95
90 90

Metalloinvest Pellets
85 85

Cleveland-Cliffs Incorporated Pellets

80 80
75 75
US¢/MTU

US Steel Mining Company Pellets

Metalloinvest
70 70

Rio Tinto Pellets

National Mineral Development Corp

65 65

LKAB Pellets
60 60
CVG Ferrominera Orinoco CA

55 55
50 50
CVRD Pellets
Kumba Resources

45 45
SNIM

40 40
35 35
MBR
BHP Billiton

CSN
CVRD

30 30
Rio Tinto

25 25
20 20
15 15
10 10
5 5
0 0
0 50 100 150 200 250 300 350

Cumulative Costed Production, Mt Fe

——————AME Mineral Economics • Iron Ore 2007——————

A - 59
Confidential: see contract at www.ame.com.au Mine Costs

Table A.26
2002 Iron Ore Costs - CIF Japan by Country (ranked)
Nominal Terms

Costed Cash Costs, US¢/MTU

Country Production Freight CIF
Mt Fe FOB Rate Japan
Australia 106.4 11.58 5.86 17.44
New Zealand 0.9 12.21 8.51 20.72
Brazil 93.9 9.97 11.73 21.70
Venezuela 10.2 15.67 11.78 27.45
South Africa 20.7 17.73 10.20 27.93
Sweden 3.9 19.11 9.82 28.93
India 13.0 20.84 8.35 29.19
Mauritania 6.0 20.64 9.83 30.47
Peru 0.9 20.13 11.89 32.02
Canada 4.6 23.24 11.04 34.28
Chile 1.7 26.70 13.13 39.83
Russia 11.3 41.72 16.54 58.27

Total/Averages (Non-Agglomerated) 273.4 13.95 9.29 23.24

Brazil Pellets 25.9 21.80 12.02 33.82

Venezuela Pellets 1.5 27.08 11.89 38.97
India Pellets 2.1 31.14 11.65 42.79
Chile Pellets 2.5 30.46 13.32 43.78
Sweden Pellets 9.3 36.68 9.52 46.20
Peru Pellets 2.0 36.59 12.52 49.11
Canada Pellets 13.9 43.69 10.96 54.65
Australia Pellets 1.4 50.13 7.53 57.66
Russia Pellets 15.1 49.94 17.07 67.01

Total/Averages (Agglomerated) 73.7 35.17 12.50 47.68

——————AME Mineral Economics • Iron Ore 2007——————

A - 60
Mine Costs Confidential: see contract at www.ame.com.au

Figure A.18
2002 Iron Ore Costs - CIF Japan by Country
Nominal Terms

140 140
135 Freight Rate 135
130 FOB 130
125 125
120 120
115 115
110 110
105 105
100 100
95 95
90 90
85 85

Russia Pellets
80 80
75 75
US¢/MTU

Canada Pellets
70 70

Russia
65 65

Sweden Pellets
60 60
55 55
50 50
Brazil Pellets

Canada

45 45
Mauritania
South Africa
Venezuela

40 40
India

35 35
Brazil

30 30
Australia

25 25
20 20
15 15
10 10
5 5
0 0
0 50 100 150 200 250 300

Cumulative Costed Production, Mt Fe

——————AME Mineral Economics • Iron Ore 2007——————

A - 61