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

au

Table A.40
2004 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 3.3 2.18 2.17 3.08 0.47 - 7.90
Alegria Brazil 11.5 2.91 2.41 3.26 0.52 - 9.10
Alegria / Germano (Samarco) Brazil 1.6 1.99 3.95 2.76 0.20 - 8.90
Alegria / Germano (Samarco) Pellets Brazil 13.5 1.99 3.95 2.76 0.20 7.62 16.52
Area C Australia 12.8 3.24 0.48 2.68 0.92 - 7.32
Bailadila 5,14,11c India 11.9 1.76 2.82 10.56 0.48 - 15.62
Baiyun China 4.0 22.63 8.27 3.92 - - 34.82
Beeshoek South Africa 5.4 6.20 2.97 6.32 - - 15.49
BHPB-OB23/25 Australia 5.7 3.74 1.65 2.92 1.07 - 9.38
BHPB-Yandi Australia 37.5 2.05 0.40 2.62 0.82 - 5.89
Brockman No.2/Syncline Australia 8.4 3.33 0.87 2.97 1.01 - 8.18
Brucutu Brazil 5.7 1.39 1.36 2.47 0.26 - 5.48
Capão Xavier Brazil 4.0 2.32 1.47 4.70 0.49 - 8.98
Carajás Brazil 58.1 1.56 0.86 1.86 0.52 - 4.80
Carajás Pellets Brazil 6.0 1.56 0.86 1.86 0.52 5.66 10.46
Carol Lake Canada 1.2 6.86 8.92 3.99 - - 19.77
Carol Lake Pellets Canada 9.7 6.86 8.92 3.99 - 14.34 34.11
Casa de Pedra Brazil 14.7 2.45 2.53 3.21 0.52 - 8.71
Cauê/Minas do Meio * Brazil 9.4 2.68 1.20 2.42 0.49 - 6.79
Chadormalu Iran 4.5 2.58 2.35 2.48 1.87 - 9.28
Channar Australia 9.3 4.55 1.38 3.48 0.93 - 10.34
Choghart Iran 3.8 2.24 1.70 2.19 1.89 - 8.02
Cockatoo Island Australia 0.6 16.15 0.20 1.58 1.39 - 19.32
Conceição * Brazil 9.1 2.30 1.37 2.42 0.52 - 6.61
Córrego do Feijão Brazil 7.4 2.17 2.23 4.60 0.53 - 9.53
Córrego do Meio Brazil 1.8 3.67 2.59 3.38 0.50 - 10.14
Corumbá Brazil 1.3 3.63 2.16 5.28 0.54 - 11.61
CVRD Southern System Plants Pellets Brazil 25.9 1.71 1.80 2.39 0.57 7.69 14.16
Donimalai India 4.6 2.14 2.74 11.26 0.45 - 16.59
Eastern Range Australia 2.8 4.79 1.28 3.18 1.46 - 10.71
Empire Mine Pellets USA 5.4 8.87 4.79 2.01 0.25 10.70 26.62
Fazendão Brazil 0.6 1.09 1.16 2.42 0.36 - 5.03
Goldsworthy (Nimingarra-Yarrie) Australia 5.4 8.91 1.72 2.35 1.12 - 14.10
Gongo Soco * Brazil 3.8 2.73 0.94 2.35 0.48 - 6.50
Guelb El Rhein Mauritania 4.0 4.59 3.48 7.63 2.55 - 18.25
Hibbing Taconite Pellets USA 8.2 10.20 7.86 2.49 1.43 11.05 33.03
HIYandi Australia 19.8 3.05 0.92 3.34 1.19 - 8.50
Jangada Brazil 3.4 3.59 1.25 4.46 0.48 - 9.78
Jimblebar Australia 6.2 4.23 1.14 2.94 0.93 - 9.24
Karelsky Okatysh Russia 0.5 9.32 6.80 7.35 - - 23.47
Karelsky Okatysh Pellets Russia 7.4 9.32 6.80 7.35 - 6.67 30.14
Kedia d'Ijill Mauritania 4.8 2.65 0.37 7.59 2.60 - 13.21

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

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

Table A.40 (Continued)

2004 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
Keetac Pellets USA 6.0 6.19 5.31 2.28 1.43 11.31 26.52
Kiruna Sweden 2.9 7.78 3.72 3.40 - - 14.90
Kiruna Pellets Sweden 11.4 7.78 3.72 3.40 - 13.74 28.64
Koolyanobbing Australia 2.7 7.67 1.54 7.34 1.12 - 17.67
Kudremukh India 4.9 2.80 5.32 3.54 0.07 - 11.73
Kudremukh Pellets India 2.4 2.80 5.32 3.54 0.07 10.32 22.05
Lebedinsky GOK Russia 9.8 6.23 5.87 18.76 2.22 - 33.08
Lebedinsky GOK Pellets Russia 9.5 6.23 5.87 18.76 2.22 6.86 39.94
Los Colorados Chile 0.7 4.88 3.01 3.75 1.07 - 12.71
Los Colorados Pellets Chile 4.4 4.88 3.01 3.75 1.07 11.01 23.72
Malmberget Sweden 3.2 7.97 2.70 4.36 - - 15.03
Malmberget Pellets Sweden 4.3 7.97 2.70 4.36 - 15.35 30.38
Marandoo Australia 11.7 2.98 0.55 3.01 0.97 - 7.51
Marcona Peru 2.7 7.97 2.72 2.64 1.67 - 15.00
Marcona Pellets Peru 3.4 7.97 2.72 2.64 1.67 10.96 25.96
M'Haoudat Mauritania 1.7 8.28 0.61 7.84 2.60 - 19.33
Mikhailovsky GOK Russia 9.6 9.69 6.74 19.83 2.19 - 38.45
Mikhailovsky GOK Pellets Russia 8.7 9.69 6.74 19.83 2.19 6.90 45.35
Mina do Andrade Brazil 1.4 1.27 1.10 1.34 0.51 - 4.22
Minntac Pellets USA 15.0 7.14 5.51 2.24 1.43 11.22 27.54
Minorca Pellets USA 2.9 9.05 6.88 2.11 1.43 12.29 31.76
Mont-Wright Canada 4.1 7.17 5.58 6.11 - - 18.86
Mont-Wright Pellets Canada 9.1 7.17 5.58 6.11 - 11.98 30.84
Mount Whaleback/OB30 Australia 21.1 6.97 1.77 2.92 0.98 - 12.64
Nanfen China 3.6 17.57 6.40 5.39 - - 29.36
Northshore Pellets USA 5.0 7.10 7.05 2.00 1.43 11.41 28.99
Paraburdoo Australia 4.9 4.45 1.35 3.18 0.97 - 9.95
Piar Division Venezuela 16.1 4.81 1.07 2.67 0.66 - 9.21
Piar Division Pellets Venezuela 3.0 4.81 1.07 2.67 0.66 7.04 16.25
Pico Complex Brazil 12.3 2.90 1.90 4.25 0.51 - 9.56
Qidashan China 2.7 40.20 9.80 4.09 - - 54.09
Robe River Iron Ore (Pannawonica) Australia 27.4 3.43 0.61 3.48 0.82 - 8.34
Romeral, El Chile 2.1 7.32 4.52 3.35 1.07 - 16.26
Savage River Australia 0.0 16.84 8.91 1.73 0.12 - 27.60
Savage River Pellets Australia 2.1 16.84 8.91 1.73 0.12 13.00 40.60
Segredo/João Pereira Brazil 6.1 2.32 3.55 3.08 0.49 - 9.44
Segredo/João Pereira Pellets Brazil 4.5 2.32 3.55 3.08 0.49 8.57 18.01
Shuichang China 3.1 41.92 15.39 5.07 - - 62.38
Sishen South Africa 26.9 7.81 1.27 5.53 - - 14.61
Taharoa New Zealand 2.1 1.23 3.89 3.61 1.05 - 9.78
Tallering Peak Australia 1.4 7.62 1.51 7.98 1.50 - 18.61
Tamanduá/Capitão do Mato/Abóboras Brazil 20.4 3.71 1.28 3.99 0.51 - 9.49

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

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

Table A.40 (Continued)

2004 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
Thabazimbi South Africa 2.4 16.51 3.13 5.96 - - 25.60
Tilden Pellets USA 7.7 8.01 5.02 2.11 0.23 11.51 26.88
Timbopeba * Brazil 3.6 3.95 1.35 2.35 0.50 - 8.15
Tom Price Australia 17.0 6.41 1.11 2.96 0.98 - 11.46
United Taconite Pellets USA 4.1 8.11 7.36 2.11 1.30 10.99 29.87
Wabush Mines Pellets Canada 3.8 8.22 9.98 7.29 - 17.31 42.80
West Angelas Australia 17.5 7.00 0.39 3.50 0.91 - 11.80
Whyalla (Iron Duke/Duchess/Knight) Australia 3.3 6.88 1.43 2.45 0.92 - 11.68
Windarling/Mount Jackson Australia 2.3 7.57 1.29 11.11 1.37 - 21.34

Total/Averages (Non-Agglomerated) 540.3 4.71 1.83 4.20 0.76 - 11.50

Total/Averages (Agglomerated) 183.3 6.15 4.91 4.76 0.75 10.12 26.69
Total Costed Production 723.6

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

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A - 95
Confidential: see contract at www.ame.com.au Mine Costs

Table A.41
2004 Iron Ore Costs - FOB (ranked)
Nominal Terms
Rank Mine Cost %-ile Rank Mine Cost %-ile
$/t Rank $/t Rank
1 Mina do Andrade 4.22 0.2% 48 Marcona 15.00 67.9%
2 Carajás 4.80 8.2% 49 Malmberget 15.03 68.4%
3 Fazendão 5.03 8.3% 50 Beeshoek 15.49 69.1%
4 Brucutu 5.48 9.1% 51 Bailadila 5,14,11c 15.62 70.7%
5 BHPB-Yandi 5.89 14.3% 52 Piar Division Pellets 16.25 71.2%
6 Gongo Soco 6.50 14.8% 53 Romeral, El 16.26 71.4%
7 Conceição 6.61 16.1% 54 Alegria / Germano (Samarco) Pellets 16.52 73.3%
8 Cauê/Minas do Meio 6.79 17.4% 55 Donimalai 16.59 73.9%
9 Area C 7.32 19.1% 56 Koolyanobbing 17.67 74.3%
10 Marandoo 7.51 20.7% 57 Segredo/João Pereira Pellets 18.01 74.9%
11 Agua Limpa/Cururu 7.90 21.2% 58 Guelb El Rhein 18.25 75.5%
12 Choghart 8.02 21.7% 59 Tallering Peak 18.61 75.7%
13 Timbopeba 8.15 22.2% 60 Mont-Wright 18.86 76.3%
14 Brockman No.2/Syncline 8.18 23.4% 61 Cockatoo Island 19.32 76.3%
15 Robe River Iron Ore (Pannawonica) 8.34 27.2% 62 M'Haoudat 19.33 76.6%
16 HIYandi 8.50 29.9% 63 Carol Lake 19.77 76.7%
17 Casa de Pedra 8.71 31.9% 64 Windarling/Mount Jackson 21.34 77.1%
18 Alegria / Germano (Samarco) 8.90 32.1% 65 Kudremukh Pellets 22.05 77.4%
19 Capão Xavier 8.98 32.7% 66 Karelsky Okatysh 23.47 77.4%
20 Alegria 9.10 34.3% 67 Los Colorados Pellets 23.72 78.1%
21 Piar Division 9.21 36.5% 68 Thabazimbi 25.60 78.4%
22 Jimblebar 9.24 37.4% 69 Marcona Pellets 25.96 78.9%
23 Chadormalu 9.28 38.0% 70 Keetac Pellets 26.52 79.7%
24 BHPB-OB23/25 9.38 38.8% 71 Empire Mine Pellets 26.62 80.4%
25 Segredo/João Pereira 9.44 39.6% 72 Tilden Pellets 26.88 81.5%
26 Tamanduá/Capitão do Mato/Abóboras 9.49 42.4% 73 Minntac Pellets 27.54 83.6%
27 Córrego do Feijão 9.53 43.5% 74 Savage River 27.60 83.6%
28 Pico Complex 9.56 45.2% 75 Kiruna Pellets 28.64 85.1%
29 Jangada 9.78 45.6% 76 Northshore Pellets 28.99 85.8%
30 Taharoa 9.78 45.9% 77 Nanfen 29.36 86.3%
31 Paraburdoo 9.95 46.6% 78 United Taconite Pellets 29.87 86.9%
32 Córrego do Meio 10.14 46.9% 79 Karelsky Okatysh Pellets 30.14 87.9%
33 Channar 10.34 48.1% 80 Malmberget Pellets 30.38 88.5%
34 Carajás Pellets 10.46 49.0% 81 Mont-Wright Pellets 30.84 89.8%
35 Eastern Range 10.71 49.4% 82 Minorca Pellets 31.76 90.2%
36 Tom Price 11.46 51.7% 83 Hibbing Taconite Pellets 33.03 91.3%
37 Corumbá 11.61 51.9% 84 Lebedinsky GOK 33.08 92.7%
38 Whyalla (Iron Duke/Duchess/Knight) 11.68 52.3% 85 Carol Lake Pellets 34.11 94.0%
39 Kudremukh 11.73 53.0% 86 Baiyun 34.82 94.5%
40 West Angelas 11.80 55.4% 87 Mikhailovsky GOK 38.45 95.9%
41 Mount Whaleback/OB30 12.64 58.4% 88 Lebedinsky GOK Pellets 39.94 97.2%
42 Los Colorados 12.71 58.5% 89 Savage River Pellets 40.60 97.5%
43 Kedia d'Ijill 13.21 59.1% 90 Wabush Mines Pellets 42.80 98.0%
44 Goldsworthy (Nimingarra-Yarrie) 14.10 59.9% 91 Mikhailovsky GOK Pellets 45.35 99.2%
45 CVRD Southern System Plants 14.16 63.4% 92 Qidashan 54.09 99.6%
46 Sishen 14.61 67.2% 93 Shuichang 62.38 100.0%
47 Kiruna 14.90 67.6%

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

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

Table A.42
2004 Iron Ore Costs - FOB (ranked)
Nominal Terms
Rank Mine Cost %-ile Rank Mine Cost %-ile
¢/MTU Rank ¢/MTU Rank
1 Mina do Andrade 6.36 0.2% 48 Kiruna 22.91 67.9%
2 Carajás 7.17 8.2% 49 Malmberget 23.11 68.4%
3 Fazendão 7.75 8.3% 50 Bailadila 5,14,11c 23.64 70.0%
4 Brucutu 8.80 9.1% 51 Beeshoek 23.87 70.7%
5 BHPB-Yandi 10.00 14.3% 52 Romeral, El 24.50 71.0%
6 Conceição 10.16 15.5% 53 Piar Division Pellets 24.63 71.4%
7 Gongo Soco 10.23 16.1% 54 Alegria / Germano (Samarco) Pellets 24.96 73.3%
8 Cauê/Minas do Meio 10.44 17.4% 55 Donimalai 25.54 73.9%
9 Marandoo 11.71 19.0% 56 Koolyanobbing 27.63 74.3%
10 Area C 11.73 20.7% 57 Guelb El Rhein 27.66 74.9%
11 Choghart 12.08 21.3% 58 Segredo/João Pereira Pellets 27.70 75.5%
12 Agua Limpa/Cururu 12.52 21.7% 59 Cockatoo Island 28.20 75.6%
13 Timbopeba 12.70 22.2% 60 Mont-Wright 29.02 76.1%
14 Brockman No.2/Syncline 12.74 23.4% 61 Tallering Peak 29.27 76.3%
15 Casa de Pedra 13.14 25.4% 62 M'Haoudat 30.07 76.6%
16 Alegria / Germano (Samarco) 13.29 25.6% 63 Carol Lake 30.40 76.7%
17 Alegria 13.46 27.2% 64 Kudremukh Pellets 33.41 77.1%
18 Capão Xavier 13.55 27.8% 65 Karelsky Okatysh 34.52 77.1%
19 Chadormalu 13.75 28.4% 66 Windarling/Mount Jackson 35.04 77.4%
20 Piar Division 13.85 30.6% 67 Los Colorados Pellets 36.22 78.1%
21 Tamanduá/Capitão do Mato/Abóboras 13.93 33.4% 68 Marcona Pellets 39.33 78.5%
22 Córrego do Feijão 14.31 34.4% 69 Thabazimbi 40.00 78.9%
23 Segredo/João Pereira 14.38 35.3% 70 Keetac Pellets 40.24 79.7%
24 Pico Complex 14.42 37.0% 71 Empire Mine Pellets 40.96 80.4%
25 Robe River Iron Ore (Pannawonica) 14.54 40.8% 72 Savage River 41.02 80.4%
26 HIYandi 14.54 43.5% 73 Kiruna Pellets 42.74 82.0%
27 Jimblebar 14.72 44.4% 74 Minntac Pellets 43.31 84.1%
28 Jangada 14.74 44.8% 75 Tilden Pellets 43.69 85.1%
29 BHPB-OB23/25 14.94 45.6% 76 Northshore Pellets 44.64 85.8%
30 Paraburdoo 15.54 46.3% 77 Nanfen 45.17 86.3%
31 Carajás Pellets 15.60 47.1% 78 Malmberget Pellets 45.33 86.9%
32 Córrego do Meio 15.94 47.4% 79 United Taconite Pellets 45.80 87.5%
33 Channar 16.33 48.7% 80 Karelsky Okatysh Pellets 46.38 88.5%
34 Eastern Range 16.72 49.1% 81 Mont-Wright Pellets 47.56 89.8%
35 Taharoa 17.18 49.4% 82 Lebedinsky GOK 47.92 91.1%
36 Kudremukh 17.51 50.0% 83 Hibbing Taconite Pellets 49.89 92.3%
37 Tom Price 17.87 52.4% 84 Minorca Pellets 50.40 92.7%
38 Corumbá 18.13 52.6% 85 Carol Lake Pellets 52.46 94.0%
39 Whyalla (Iron Duke/Duchess/Knight) 18.40 53.0% 86 Baiyun 54.42 94.5%
40 Los Colorados 18.77 53.1% 87 Mikhailovsky GOK 55.35 95.9%
41 West Angelas 19.17 55.5% 88 Lebedinsky GOK Pellets 60.50 97.2%
42 Mount Whaleback/OB30 19.69 58.5% 89 Savage River Pellets 61.80 97.5%
43 Kedia d'Ijill 20.56 59.1% 90 Wabush Mines Pellets 66.35 98.0%
44 Marcona 21.78 59.5% 91 Mikhailovsky GOK Pellets 68.17 99.2%
45 CVRD Southern System Plants 21.79 63.1% 92 Qidashan 80.14 99.6%
46 Sishen 21.96 66.8% 93 Shuichang 93.07 100.0%
47 Goldsworthy (Nimingarra-Yarrie) 22.10 67.5%

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

A - 97
 US$/tonne

0
5
10
15
20
25
30
35
40
45
50
55
60
65
70
75
Figure A.28

0
Carajás

50
BHPB-Yandi

100
Conceição

Mining
Cauê/Minas do Meio
Area C Royalties
Pelletizing

Processing
Marandoo

150
Robe River Iron Ore (Pannawonica)
Transport & Ports

HIYandi

200
Confidential: see contract at www.ame.com.au

Casa de Pedra
Alegria
Piar Division

250
Tamanduá/Capitão do Mato/Abóboras

300
Pico Complex
Channar

A - 98
350
Tom Price
Nominal Terms

West Angelas

400
Mount Whaleback/OB30
2004 Iron Ore Costs - FOB

CVRD Southern System Plants Pellets

450
Sishen

Cumulative Costed Production, Mt

Bailadila 5,14,11c

500
Alegria / Germano (Samarco) Pellets

550

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

Minntac Pellets

600
Kiruna Pellets

Mont-Wright Pellets

650
Lebedinsky GOK
Carol Lake Pellets
Mikhailovsky GOK

700
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.43
2004 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-
1.4 1.27 1.10 1.34 0.51 - 4.22
Mineira Participacao Industria e Comercio Ltda
CVRD 161.3 2.37 1.43 2.87 0.50 - 7.17
BHP Billiton 89.5 4.05 0.98 2.73 0.91 - 8.66
NISCO 8.3 2.42 2.05 2.35 1.88 - 8.70
CSN 14.7 2.45 2.53 3.21 0.52 - 8.71
CVG Ferrominera Orinoco CA 16.1 4.81 1.07 2.67 0.66 - 9.21
Rio Tinto 121.2 4.44 0.91 3.31 0.96 - 9.63
BlueScope 2.1 1.23 3.89 3.61 1.05 - 9.78
OneSteel Limited 3.3 6.88 1.43 2.45 0.92 - 11.68
Kudremukh Iron Ore Co Ltd 4.9 2.80 5.32 3.54 0.07 - 11.73
LKAB 6.1 7.88 3.19 3.90 - - 14.97
Shougang Hierro-Peru 2.7 7.97 2.72 2.64 1.67 - 15.00
Cia Minera del Pacifico SA 2.8 6.70 4.14 3.45 1.07 - 15.36
Assmang 5.4 6.20 2.97 6.32 - - 15.49
Kumba Resources 29.3 8.52 1.42 5.57 - - 15.51
National Mineral Development Corp 16.5 1.87 2.80 10.75 0.47 - 15.89
SNIM 10.5 4.31 1.58 7.65 2.58 - 16.12
Mount Gibson Iron 1.4 7.62 1.51 7.98 1.50 - 18.61
QCM 4.1 7.17 5.58 6.11 - - 18.86
Portman Limited 5.6 8.51 1.30 8.29 1.25 - 19.34
Severstal 0.5 9.32 6.80 7.35 - - 23.47
Ivanhoe Mines Ltd 0.0 16.84 8.91 1.73 0.12 - 27.60
Benxi Iron and Steel 3.6 17.57 6.40 5.39 - - 29.36
Metalloinvest 9.8 6.23 5.87 18.76 2.22 - 33.08
Baotou Iron and Steel 4.0 22.63 8.27 3.92 - - 34.82
Anshan Iron & Steel Group 2.7 40.20 9.80 4.09 - - 54.09
Shougang Corp 3.1 41.92 15.39 5.07 - - 62.38

Total/Averages (Non-Agglomerated) 530.7 4.62 1.74 3.92 0.74 - 11.01

CVRD Pellets 43.1 1.80 2.19 2.45 0.50 7.49 14.42

CVG Ferrominera Orinoco CA Pellets 3.0 4.81 1.07 2.67 0.66 7.04 16.25
BHP Billiton Pellets 6.8 1.99 3.95 2.76 0.20 7.62 16.52
Kudremukh Iron Ore Co Ltd Pellets 2.4 2.80 5.32 3.54 0.07 10.32 22.05
Cia Minera del Pacifico SA Pellets 4.4 4.88 3.01 3.75 1.07 11.01 23.72
Shougang Hierro-Peru Pellets 3.4 7.97 2.72 2.64 1.67 10.96 25.96
US Steel Mining Company Pellets 21.0 6.87 5.45 2.25 1.43 11.25 27.25
LKAB Pellets 15.7 7.83 3.44 3.66 - 14.18 29.12
Severstal Pellets 7.4 9.32 6.80 7.35 - 6.67 30.14
Cleveland-Cliffs Incorporated Pellets 34.2 8.57 6.80 2.75 0.80 11.84 30.76
QCM Pellets 9.1 7.17 5.58 6.11 - 11.98 30.84

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

A - 99
Confidential: see contract at www.ame.com.au Mine Costs

Table A.43 (Continued)

2004 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
Ispat Inland Inc. Pellets 2.9 9.05 6.88 2.11 1.43 12.29 31.76
Rio Tinto Pellets 9.7 6.86 8.92 3.99 - 14.34 34.11
Metalloinvest Pellets 9.5 6.23 5.87 18.76 2.22 6.86 39.94
Ivanhoe Mines Ltd Pellets 2.1 16.84 8.91 1.73 0.12 13.00 40.60

Total/Averages (Agglomerated) 174.6 5.97 4.82 4.01 0.68 10.28 25.76

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

A - 100
Mine Costs Confidential: see contract at www.ame.com.au

Figure A.29
2004 Iron Ore Costs - FOB by Company
Nominal Terms

75 75

Pelletizing
70 70
Royalties

Transport & Ports

65 65
Processing

Mining
60 60

Rio Tinto Pellets

55 55

Metalloinvest Pellets
50 50

Cleveland-Cliffs Incorporated Pellets

US Steel Mining Company Pellets
45 45

Metalloinvest
40 40
US$/tonne

QCM Pellets
LKAB Pellets
35 35
National Mineral Development Corp

30 30
Kumba Resources
CVG Ferrominera Orinoco CA

25 25
CVRD Pellets

SNIM

20 20
BHP Billiton

Rio Tinto

15 15
CSN
CVRD

10 10

5 5

0 0
0 50 100 150 200 250 300 350 400 450 500 550 600 650 700

Cumulative Costed Production, Mt

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

A - 101
Confidential: see contract at www.ame.com.au Mine Costs

Table A.44
2004 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 179.4 2.37 1.54 2.90 0.50 - 7.31
Iran 8.3 2.42 2.05 2.35 1.88 - 8.70
Venezuela 16.1 4.81 1.07 2.67 0.66 - 9.21
Australia 217.8 4.45 0.90 3.20 0.96 - 9.51
New Zealand 2.1 1.23 3.89 3.61 1.05 - 9.78
India 21.4 2.08 3.38 9.10 0.38 - 14.93
Sweden 6.1 7.88 3.19 3.90 - - 14.97
Peru 2.7 7.97 2.72 2.64 1.67 - 15.00
Chile 2.8 6.70 4.14 3.45 1.07 - 15.36
South Africa 34.7 8.16 1.66 5.68 - - 15.50
Mauritania 10.5 4.31 1.58 7.65 2.58 - 16.12
Canada 5.2 7.10 6.32 5.64 - - 19.06
Russia 19.9 7.97 6.31 19.01 2.15 - 35.45
China 13.4 29.27 9.74 4.62 - - 43.63

Total/Averages (Non-Agglomerated) 540.3 4.71 1.83 4.20 0.76 - 11.50

Brazil Pellets 49.9 1.82 2.43 2.49 0.46 7.51 14.70

Venezuela Pellets 3.0 4.81 1.07 2.67 0.66 7.04 16.25
India Pellets 2.4 2.80 5.32 3.54 0.07 10.32 22.05
Chile Pellets 4.4 4.88 3.01 3.75 1.07 11.01 23.72
Peru Pellets 3.4 7.97 2.72 2.64 1.67 10.96 25.96
USA Pellets 54.3 7.96 6.06 2.20 1.13 11.25 28.61
Sweden Pellets 15.7 7.83 3.44 3.66 - 14.18 29.12
Canada Pellets 22.6 7.21 7.76 5.40 - 13.89 34.27
Russia Pellets 25.6 8.30 6.43 15.82 1.57 6.82 38.94
Australia Pellets 2.1 16.84 8.91 1.73 0.12 13.00 40.60

Total/Averages (Agglomerated) 183.3 6.15 4.91 4.76 0.75 10.12 26.69

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

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

Figure A.30
2004 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

China
Russia Pellets
45 45

Canada Pellets
Russia
40 40
US$/tonne

Sweden Pellets
USA Pellets
35 35

30 30

25 25
South Africa
Mauritania
Brazil Pellets

20 20
India
Venezuela

Australia

15 15
Brazil

10 10

5 5

0 0
0 50 100 150 200 250 300 350 400 450 500 550 600 650 700

Cumulative Costed Production, Mt

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

A - 103
Confidential: see contract at www.ame.com.au Mine Costs

Table A.45
2004 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 2.1 12.52 17.27 29.79
Alegria Brazil 7.8 13.46 16.13 29.59
Alegria / Germano (Samarco) Brazil 1.1 13.29 16.22 29.51
Alegria / Germano (Samarco) Pellets Brazil 9.0 24.96 16.42 41.38
Area C Australia 8.0 11.73 22.72 34.45
Bailadila 5,14,11c India 7.9 23.64 21.52 45.16
Beeshoek South Africa 3.5 23.87 20.36 44.23
BHPB-OB23/25 Australia 3.6 14.94 22.56 37.50
BHPB-Yandi Australia 22.1 10.00 24.05 34.05
Brockman No.2/Syncline Australia 5.4 12.74 27.60 40.34
Brucutu Brazil 3.5 8.80 17.50 26.30
Capão Xavier Brazil 2.7 13.55 17.34 30.89
Carajás Brazil 38.9 7.17 13.82 20.99
Carajás Pellets Brazil 4.0 15.60 13.79 29.39
Carol Lake Canada 0.8 30.40 16.30 46.70
Carol Lake Pellets Canada 6.3 52.46 16.29 68.75
Casa de Pedra Brazil 9.7 13.14 16.45 29.59
Cauê/Minas do Meio * Brazil 6.1 10.44 16.78 27.22
Channar Australia 5.9 16.33 28.02 44.35
Cockatoo Island Australia 0.4 28.20 26.52 54.72
Conceição * Brazil 5.9 10.16 16.78 26.94
Córrego do Feijão Brazil 4.9 14.31 18.22 32.53
Córrego do Meio Brazil 1.2 15.94 17.15 33.09
Corumbá Brazil 0.8 18.13 28.00 46.13
CVRD Southern System Plants Pellets Brazil 16.8 21.79 16.77 38.56
Donimalai India 3.0 25.54 21.88 47.42
Eastern Range Australia 1.8 16.72 27.68 44.40
Empire Mine Pellets USA 3.5 40.96 - 40.96
Fazendão Brazil 0.4 7.75 16.77 24.52
Goldsworthy (Nimingarra-Yarrie) Australia 3.4 22.10 22.20 44.30
Gongo Soco * Brazil 2.4 10.23 17.15 27.38
Guelb El Rhein Mauritania 2.6 27.66 8.85 36.51
Hibbing Taconite Pellets USA 5.4 49.89 - 49.89
HIYandi Australia 11.6 14.54 30.32 44.86
Jangada Brazil 2.3 14.74 16.41 31.15
Jimblebar Australia 3.9 14.72 22.56 37.28
Karelsky Okatysh Russia 0.3 34.52 6.69 41.21
Karelsky Okatysh Pellets Russia 4.8 46.38 7.00 53.38
Kedia d'Ijill Mauritania 3.1 20.56 9.09 29.65
Keetac Pellets USA 4.0 40.24 - 40.24
Kiruna Sweden 1.9 22.91 5.14 28.05
Kiruna Pellets Sweden 7.6 42.74 4.99 47.73

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A - 104
Mine Costs Confidential: see contract at www.ame.com.au

Table A.45 (Continued)

2004 Iron Ore Costs - CIF Europe (alphabetically)
Nominal Terms

Costed Cash Costs, US¢/MTU

Mine Country Production Freight CIF
Mt Fe FOB Rate Europe
Koolyanobbing Australia 1.7 27.63 24.95 52.58
Kudremukh India 3.3 17.51 24.27 41.78
Kudremukh Pellets India 1.6 33.41 24.63 58.04
Lebedinsky GOK Russia 6.8 47.92 19.10 67.02
Lebedinsky GOK Pellets Russia 6.3 60.50 19.96 80.46
Los Colorados Chile 0.5 18.77 29.35 48.12
Los Colorados Pellets Chile 2.9 36.22 30.36 66.58
Malmberget Sweden 2.1 23.11 5.14 28.25
Malmberget Pellets Sweden 2.9 45.33 4.99 50.32
Marandoo Australia 7.5 11.71 27.70 39.41
Marcona Peru 1.8 21.78 29.41 51.19
Marcona Pellets Peru 2.3 39.33 30.70 70.03
M'Haoudat Mauritania 1.1 30.07 9.09 39.16
Mikhailovsky GOK Russia 6.6 55.35 18.98 74.33
Mikhailovsky GOK Pellets Russia 5.8 68.17 19.81 87.98
Minntac Pellets USA 9.5 43.31 - 43.31
Minorca Pellets USA 1.8 50.40 - 50.40
Mont-Wright Canada 2.6 29.02 10.64 39.66
Mont-Wright Pellets Canada 5.9 47.56 10.66 58.22
Mount Whaleback/OB30 Australia 13.6 19.69 22.07 41.76
Northshore Pellets USA 3.2 44.64 - 44.64
Paraburdoo Australia 3.1 15.54 27.68 43.22
Piar Division Venezuela 10.7 13.85 15.27 29.12
Piar Division Pellets Venezuela 2.0 24.63 15.39 40.02
Pico Complex Brazil 8.2 14.42 17.35 31.77
Robe River Iron Ore (Pannawonica) Australia 15.7 14.54 25.88 40.42
Romeral, El Chile 1.4 24.50 30.21 54.71
Savage River Australia 0.0 41.02 26.26 67.28
Savage River Pellets Australia 1.4 61.80 26.90 88.70
Segredo/João Pereira Brazil 4.0 14.38 16.62 31.00
Segredo/João Pereira Pellets Brazil 2.9 27.70 16.77 44.47
Sishen South Africa 17.9 21.96 19.86 41.82
Taharoa New Zealand 1.2 17.18 31.01 48.19
Tallering Peak Australia 0.9 29.27 29.50 58.77
Tamanduá/Capitão do Mato/Abóboras Brazil 13.9 13.93 16.86 30.79
Tilden Pellets USA 4.7 43.69 - 43.69
Timbopeba * Brazil 2.3 12.70 16.97 29.67
Tom Price Australia 10.9 17.87 27.65 45.52
United Taconite Pellets USA 2.7 45.80 - 45.80
Wabush Mines Pellets Canada 2.5 66.35 16.43 82.78
West Angelas Australia 10.8 19.17 24.10 43.27
Whyalla (Iron Duke/Duchess/Knight) Australia 2.1 18.40 30.22 48.62

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

A - 105
Confidential: see contract at www.ame.com.au Mine Costs

Table A.45 (Continued)

2004 Iron Ore Costs - CIF Europe (alphabetically)
Nominal Terms

Costed Cash Costs, US¢/MTU

Mine Country Production Freight CIF
Mt Fe FOB Rate Europe
Windarling/Mount Jackson Australia 1.4 35.04 26.19 61.23

Total/Averages 450.5 23.04 17.88 40.92

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

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

A - 106
Mine Costs Confidential: see contract at www.ame.com.au

Table A.46
2004 Iron Ore Costs - CIF Europe (ranked)
Nominal Terms
Rank Mine Cost %-ile Rank Mine Cost %-ile
¢/MTU Rank ¢/MTU Rank
1 Carajás 20.99 8.6% 44 West Angelas 43.27 65.6%
2 Fazendão 24.52 8.7% 45 Minntac Pellets 43.31 67.7%
3 Brucutu 26.30 9.5% 46 Tilden Pellets 43.69 68.8%
4 Conceição 26.94 10.8% 47 Beeshoek 44.23 69.6%
5 Cauê/Minas do Meio 27.22 12.2% 48 Goldsworthy (Nimingarra-Yarrie) 44.30 70.3%
6 Gongo Soco 27.38 12.7% 49 Channar 44.35 71.6%
7 Kiruna 28.05 13.1% 50 Eastern Range 44.40 72.0%
8 Malmberget 28.25 13.6% 51 Segredo/João Pereira Pellets 44.47 72.7%
9 Piar Division 29.12 16.0% 52 Northshore Pellets 44.64 73.4%
10 Carajás Pellets 29.39 16.9% 53 HIYandi 44.86 76.0%
11 Alegria / Germano (Samarco) 29.51 17.1% 54 Bailadila 5,14,11c 45.16 77.7%
12 Alegria 29.59 18.8% 55 Tom Price 45.52 80.1%
13 Casa de Pedra 29.59 21.0% 56 United Taconite Pellets 45.80 80.7%
14 Kedia d'Ijill 29.65 21.7% 57 Corumbá 46.13 80.9%
15 Timbopeba 29.67 22.2% 58 Carol Lake 46.70 81.1%
16 Agua Limpa/Cururu 29.79 22.6% 59 Donimalai 47.42 81.7%
17 Tamanduá/Capitão do Mato/Abóboras 30.79 25.7% 60 Kiruna Pellets 47.73 83.4%
18 Capão Xavier 30.89 26.3% 61 Los Colorados 48.12 83.5%
19 Segredo/João Pereira 31.00 27.2% 62 Taharoa 48.19 83.8%
20 Jangada 31.15 27.7% 63 Whyalla (Iron Duke/Duchess/Knight) 48.62 84.3%
21 Pico Complex 31.77 29.5% 64 Hibbing Taconite Pellets 49.89 85.5%
22 Córrego do Feijão 32.53 30.6% 65 Malmberget Pellets 50.32 86.1%
23 Córrego do Meio 33.09 30.9% 66 Minorca Pellets 50.40 86.5%
24 BHPB-Yandi 34.05 35.8% 67 Marcona 51.19 86.9%
25 Area C 34.45 37.5% 68 Koolyanobbing 52.58 87.3%
26 Guelb El Rhein 36.51 38.1% 69 Karelsky Okatysh Pellets 53.38 88.4%
27 Jimblebar 37.28 39.0% 70 Romeral, El 54.71 88.7%
28 BHPB-OB23/25 37.50 39.8% 71 Cockatoo Island 54.72 88.8%
29 CVRD Southern System Plants 38.56 43.5% 72 Kudremukh Pellets 58.04 89.1%
30 M'Haoudat 39.16 43.8% 73 Mont-Wright Pellets 58.22 90.4%
31 Marandoo 39.41 45.4% 74 Tallering Peak 58.77 90.6%
32 Mont-Wright 39.66 46.0% 75 Windarling/Mount Jackson 61.23 90.9%
33 Piar Division Pellets 40.02 46.5% 76 Los Colorados Pellets 66.58 91.6%
34 Keetac Pellets 40.24 47.3% 77 Lebedinsky GOK 67.02 93.1%
35 Brockman No.2/Syncline 40.34 48.5% 78 Savage River 67.28 93.1%
36 Robe River Iron Ore (Pannawonica) 40.42 52.0% 79 Carol Lake Pellets 68.75 94.5%
37 Empire Mine Pellets 40.96 52.8% 80 Marcona Pellets 70.03 95.0%
38 Karelsky Okatysh 41.21 52.9% 81 Mikhailovsky GOK 74.33 96.5%
39 Alegria / Germano (Samarco) Pellets 41.38 54.8% 82 Lebedinsky GOK Pellets 80.46 97.9%
40 Mount Whaleback/OB30 41.76 57.9% 83 Wabush Mines Pellets 82.78 98.4%
41 Kudremukh 41.78 58.6% 84 Mikhailovsky GOK Pellets 87.98 99.7%
42 Sishen 41.82 62.6% 85 Savage River Pellets 88.70 100.0%
43 Paraburdoo 43.22 63.2%

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

A - 107
 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.31

0
Carajás

Conceição

50
Cauê/Minas do Meio

FOB
Piar Division
Alegria
Casa de Pedra
Freight Rate

100
Tamanduá/Capitão do Mato/Abóboras

Pico Complex
Confidential: see contract at www.ame.com.au

BHPB-Yandi

150
Area C

CVRD Southern System Plants Pellets

Marandoo

200

A - 108
Robe River Iron Ore (Pannawonica)
Nominal Terms

Alegria / Germano (Samarco) Pellets

Mount Whaleback/OB30

250
Sishen
2004 Iron Ore Costs - CIF Europe

West Angelas
Minntac Pellets

300

Cumulative Costed Production, Mt Fe

Channar
HIYandi
Bailadila 5,14,11c

350
Tom Price

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

Kiruna Pellets

400
Mont-Wright Pellets
Lebedinsky GOK
Carol Lake Pellets
Mikhailovsky GOK
Mikhailovsky GOK Pellets

450
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.47
2004 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 107.0 10.80 15.82 26.63
LKAB 3.9 23.01 5.14 28.15
CVG Ferrominera Orinoco CA 10.7 13.85 15.27 29.12
CSN 9.7 13.14 16.45 29.59
SNIM 6.9 24.84 9.00 33.84
BHP Billiton 55.0 14.08 22.98 37.05
Kumba Resources 19.4 23.38 15.14 38.53
QCM 2.6 29.02 10.64 39.66
Severstal 0.3 34.52 6.69 41.21
Kudremukh Iron Ore Co Ltd 3.3 17.51 24.27 41.78
Rio Tinto 74.2 15.72 27.10 42.82
Assmang 3.5 23.87 20.36 44.23
National Mineral Development Corp 10.8 24.16 21.62 45.78
BlueScope 1.2 17.18 31.01 48.19
OneSteel Limited 2.1 18.40 30.22 48.62
Shougang Hierro-Peru 1.8 21.78 29.41 51.19
Cia Minera del Pacifico SA 1.9 23.04 29.99 53.04
Portman Limited 3.5 30.61 25.62 56.23
Mount Gibson Iron 0.9 29.27 29.50 58.77
Metalloinvest 6.8 47.92 19.10 67.02
Ivanhoe Mines Ltd 0.0 41.02 26.26 67.28

Total/Averages (Non-Agglomerated) 325.7 15.90 20.08 35.99

CVRD Pellets 28.2 22.02 16.29 38.31

CVG Ferrominera Orinoco CA Pellets 2.0 24.63 15.39 40.02
BHP Billiton Pellets 4.5 24.96 16.42 41.38
US Steel Mining Company Pellets 13.5 42.40 - 42.40
LKAB Pellets 10.5 43.45 4.99 48.44
Cleveland-Cliffs Incorporated Pellets 22.1 47.72 1.84 49.56
Ispat Inland Inc. Pellets 1.8 50.40 - 50.40
Severstal Pellets 4.8 46.38 7.00 53.38
Kudremukh Iron Ore Co Ltd Pellets 1.6 33.41 24.63 58.04
QCM Pellets 5.9 47.56 10.66 58.22
Cia Minera del Pacifico SA Pellets 2.9 36.22 30.36 66.58
Rio Tinto Pellets 6.3 52.46 16.29 68.75
Shougang Hierro-Peru Pellets 2.3 39.33 30.70 70.03

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

A - 109
Confidential: see contract at www.ame.com.au Mine Costs

Table A.47 (Continued)

2004 Iron Ore Costs - CIF Europe by Company (ranked)
Nominal Terms

Costed Cash Costs, US¢/MTU

Company Production Freight CIF
Mt Fe FOB Rate Europe
Metalloinvest Pellets 6.3 60.50 19.96 80.46
Ivanhoe Mines Ltd Pellets 1.4 61.80 26.90 88.70

Total/Averages (Agglomerated) 113.9 39.49 10.66 50.15

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

A - 110
Mine Costs Confidential: see contract at www.ame.com.au

Figure A.32
2004 Iron Ore Costs - CIF Europe by Company
Nominal Terms

140 140
135 Freight Rate 135
130 FOB 130
125 125
120 120
115 115

Rio Tinto Pellets

110 110
105 105

Metalloinvest Pellets
100 100
95 95
90 90

Cleveland-Cliffs Incorporated Pellets

85 85

Metalloinvest
National Mineral Development Corp
80 80
US Steel Mining Company Pellets

75 75
US¢/MTU

QCM Pellets
70 70
65 65
60 LKAB Pellets 60
CVG Ferrominera Orinoco CA

Kumba Resources

Rio Tinto

55 55
CVRD Pellets
BHP Billiton

50 50
45 45
SNIM

40 40
CSN
CVRD

35 35
30 30
25 25
20 20
15 15
10 10
5 5
0 0
0 50 100 150 200 250 300 350 400

Cumulative Costed Production, Mt Fe

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

A - 111
Confidential: see contract at www.ame.com.au Mine Costs

Table A.48
2004 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 118.0 11.05 15.96 27.02
Sweden 3.9 23.01 5.14 28.15
Venezuela 10.7 13.85 15.27 29.12
Mauritania 6.9 24.84 9.00 33.84
Australia 133.7 15.49 25.53 41.01
Canada 3.4 29.33 11.91 41.23
South Africa 21.4 22.27 19.94 42.21
India 14.1 22.61 22.24 44.85
New Zealand 1.2 17.18 31.01 48.19
Peru 1.8 21.78 29.41 51.19
Chile 1.9 23.04 29.99 53.04
Russia 13.7 51.21 18.76 69.97

Total/Averages (Non-Agglomerated) 330.8 16.59 20.34 36.93

Brazil Pellets 32.7 22.42 16.31 38.73

Venezuela Pellets 2.0 24.63 15.39 40.02
Sweden Pellets 10.5 43.45 4.99 48.44
India Pellets 1.6 33.41 24.63 58.04
Chile Pellets 2.9 36.22 30.36 66.58
Canada Pellets 14.6 52.84 14.05 66.89
Peru Pellets 2.3 39.33 30.70 70.03
Russia Pellets 16.8 59.09 16.21 75.30
Australia Pellets 1.4 61.80 26.90 88.70

Total/Averages (Agglomerated) 84.8 39.39 15.67 55.05

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

A - 112
Mine Costs Confidential: see contract at www.ame.com.au

Figure A.33
2004 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

Russia Pellets
90 90
85 85

Canada Pellets
Russia
80 80
75 75
US¢/MTU

70 70

Sweden Pellets
65 65
60 60
South Africa

55 55
Brazil Pellets

India
Australia

50 50
Mauritania

45 45
Venezuela

40 40
Brazil

35 35
30 30
25 25
20 20
15 15
10 10
5 5
0 0
0 50 100 150 200 250 300 350 400

Cumulative Costed Production, Mt Fe

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

A - 113
Confidential: see contract at www.ame.com.au Mine Costs

Table A.49
2004 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 2.1 12.52 27.36 39.88
Alegria Brazil 7.8 13.46 25.56 39.02
Alegria / Germano (Samarco) Brazil 1.1 13.29 28.36 41.65
Alegria / Germano (Samarco) Pellets Brazil 9.0 24.96 28.71 53.67
Area C Australia 8.0 11.73 12.74 24.47
Bailadila 5,14,11c India 7.9 23.64 16.64 40.28
Beeshoek South Africa 3.5 23.87 23.46 47.33
BHPB-OB23/25 Australia 3.6 14.94 12.65 27.59
BHPB-Yandi Australia 22.1 10.00 13.48 23.48
Brockman No.2/Syncline Australia 5.4 12.74 12.45 25.19
Brucutu Brazil 3.5 8.80 27.73 36.53
Capão Xavier Brazil 2.7 13.55 26.63 40.18
Carajás Brazil 38.9 7.17 25.98 33.15
Carajás Pellets Brazil 4.0 15.60 25.93 41.53
Carol Lake Canada 0.8 30.40 24.24 54.64
Carol Lake Pellets Canada 6.3 52.46 24.24 76.70
Casa de Pedra Brazil 9.7 13.14 26.07 39.21
Cauê/Minas do Meio * Brazil 6.1 10.44 26.58 37.02
Channar Australia 5.9 16.33 12.64 28.97
Cockatoo Island Australia 0.4 28.20 11.46 39.66
Conceição * Brazil 5.9 10.16 26.58 36.74
Córrego do Feijão Brazil 4.9 14.31 27.47 41.78
Córrego do Meio Brazil 1.2 15.94 27.18 43.12
Corumbá Brazil 0.8 18.13 37.50 55.63
CVRD Southern System Plants Pellets Brazil 16.8 21.79 26.57 48.36
Donimalai India 3.0 25.54 16.92 42.46
Eastern Range Australia 1.8 16.72 12.49 29.21
Empire Mine Pellets USA 3.5 40.96 - 40.96
Fazendão Brazil 0.4 7.75 26.58 34.33
Goldsworthy (Nimingarra-Yarrie) Australia 3.4 22.10 12.44 34.54
Gongo Soco * Brazil 2.4 10.23 27.17 37.40
Guelb El Rhein Mauritania 2.6 27.66 21.94 49.60
Hibbing Taconite Pellets USA 5.4 49.89 - 49.89
HIYandi Australia 11.6 14.54 13.68 28.22
Jangada Brazil 2.3 14.74 26.01 40.75
Jimblebar Australia 3.9 14.72 12.64 27.36
Karelsky Okatysh Russia 0.3 34.52 28.12 62.64
Karelsky Okatysh Pellets Russia 4.8 46.38 29.41 75.79
Kedia d'Ijill Mauritania 3.1 20.56 22.53 43.09
Keetac Pellets USA 4.0 40.24 - 40.24
Kiruna Sweden 1.9 22.91 22.16 45.07
Kiruna Pellets Sweden 7.6 42.74 21.49 64.23

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

A - 114
Mine Costs Confidential: see contract at www.ame.com.au

Table A.49 (Continued)

2004 Iron Ore Costs - CIF Japan (alphabetically)
Nominal Terms

Costed Cash Costs, US¢/MTU

Mine Country Production Freight CIF
Mt Fe FOB Rate Japan
Koolyanobbing Australia 1.7 27.63 16.58 44.21
Kudremukh India 3.3 17.51 20.66 38.17
Kudremukh Pellets India 1.6 33.41 20.97 54.38
Lebedinsky GOK Russia 6.8 47.92 31.97 79.89
Lebedinsky GOK Pellets Russia 6.3 60.50 33.41 93.91
Los Colorados Chile 0.5 18.77 29.06 47.83
Los Colorados Pellets Chile 2.9 36.22 30.06 66.28
Malmberget Sweden 2.1 23.11 22.16 45.27
Malmberget Pellets Sweden 2.9 45.33 21.50 66.83
Marandoo Australia 7.5 11.71 12.50 24.21
Marcona Peru 1.8 21.78 27.16 48.94
Marcona Pellets Peru 2.3 39.33 28.35 67.68
M'Haoudat Mauritania 1.1 30.07 22.53 52.60
Mikhailovsky GOK Russia 6.6 55.35 31.77 87.12
Mikhailovsky GOK Pellets Russia 5.8 68.17 33.16 101.33
Minntac Pellets USA 9.5 43.31 - 43.31
Minorca Pellets USA 1.8 50.40 - 50.40
Mont-Wright Canada 2.6 29.02 25.46 54.48
Mont-Wright Pellets Canada 5.9 47.56 25.52 73.08
Mount Whaleback/OB30 Australia 13.6 19.69 12.37 32.06
Northshore Pellets USA 3.2 44.64 - 44.64
Paraburdoo Australia 3.1 15.54 12.49 28.03
Piar Division Venezuela 10.7 13.85 26.73 40.58
Piar Division Pellets Venezuela 2.0 24.63 26.95 51.58
Pico Complex Brazil 8.2 14.42 26.65 41.07
Robe River Iron Ore (Pannawonica) Australia 15.7 14.54 14.68 29.22
Romeral, El Chile 1.4 24.50 30.18 54.68
Savage River Australia 0.0 41.02 16.76 57.78
Savage River Pellets Australia 1.4 61.80 17.18 78.98
Segredo/João Pereira Brazil 4.0 14.38 26.33 40.71
Segredo/João Pereira Pellets Brazil 2.9 27.70 26.57 54.27
Sishen South Africa 17.9 21.96 22.88 44.84
Taharoa New Zealand 1.2 17.18 19.37 36.55
Tallering Peak Australia 0.9 29.27 18.09 47.36
Tamanduá/Capitão do Mato/Abóboras Brazil 13.9 13.93 25.90 39.83
Tilden Pellets USA 4.7 43.69 - 43.69
Timbopeba * Brazil 2.3 12.70 26.89 39.59
Tom Price Australia 10.9 17.87 12.48 30.35
United Taconite Pellets USA 2.7 45.80 - 45.80
Wabush Mines Pellets Canada 2.5 66.35 24.43 90.78
West Angelas Australia 10.8 19.17 13.67 32.84
Whyalla (Iron Duke/Duchess/Knight) Australia 2.1 18.40 21.62 40.02

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

Table A.49 (Continued)

2004 Iron Ore Costs - CIF Japan (alphabetically)
Nominal Terms

Costed Cash Costs, US¢/MTU

Mine Country Production Freight CIF
Mt Fe FOB Rate Japan
Windarling/Mount Jackson Australia 1.4 35.04 17.40 52.44

Total/Averages 450.5 23.04 20.20 43.24

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

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

Table A.50
2004 Iron Ore Costs - CIF Japan (ranked)
Nominal Terms
Rank Mine Cost %-ile Rank Mine Cost %-ile
¢/MTU Rank ¢/MTU Rank
1 BHPB-Yandi 23.48 4.9% 44 Córrego do Meio 43.12 63.8%
2 Marandoo 24.21 6.6% 45 Minntac Pellets 43.31 65.9%
3 Area C 24.47 8.3% 46 Tilden Pellets 43.69 67.0%
4 Brockman No.2/Syncline 25.19 9.5% 47 Koolyanobbing 44.21 67.4%
5 Jimblebar 27.36 10.4% 48 Northshore Pellets 44.64 68.1%
6 BHPB-OB23/25 27.59 11.2% 49 Sishen 44.84 72.1%
7 Paraburdoo 28.03 11.9% 50 Kiruna 45.07 72.5%
8 HIYandi 28.22 14.5% 51 Malmberget 45.27 73.0%
9 Channar 28.97 15.8% 52 United Taconite Pellets 45.80 73.5%
10 Eastern Range 29.21 16.2% 53 Beeshoek 47.33 74.3%
11 Robe River Iron Ore (Pannawonica) 29.22 19.6% 54 Tallering Peak 47.36 74.5%
12 Tom Price 30.35 22.1% 55 Los Colorados 47.83 74.6%
13 Mount Whaleback/OB30 32.06 25.1% 56 CVRD Southern System Plants 48.36 78.4%
14 West Angelas 32.84 27.5% 57 Marcona 48.94 78.8%
15 Carajás 33.15 36.1% 58 Guelb El Rhein 49.60 79.3%
16 Fazendão 34.33 36.2% 59 Hibbing Taconite Pellets 49.89 80.6%
17 Goldsworthy (Nimingarra-Yarrie) 34.54 36.9% 60 Minorca Pellets 50.40 81.0%
18 Brucutu 36.53 37.7% 61 Piar Division Pellets 51.58 81.4%
19 Taharoa 36.55 38.0% 62 Windarling/Mount Jackson 52.44 81.7%
20 Conceição 36.74 39.3% 63 M'Haoudat 52.60 82.0%
21 Cauê/Minas do Meio 37.02 40.7% 64 Alegria / Germano (Samarco) Pellets 53.67 83.9%
22 Gongo Soco 37.40 41.2% 65 Segredo/João Pereira Pellets 54.27 84.6%
23 Kudremukh 38.17 41.9% 66 Kudremukh Pellets 54.38 84.9%
24 Alegria 39.02 43.7% 67 Mont-Wright 54.48 85.5%
25 Casa de Pedra 39.21 45.8% 68 Carol Lake 54.64 85.7%
26 Timbopeba 39.59 46.3% 69 Romeral, El 54.68 86.0%
27 Cockatoo Island 39.66 46.4% 70 Corumbá 55.63 86.2%
28 Tamanduá/Capitão do Mato/Abóboras 39.83 49.5% 71 Savage River 57.78 86.2%
29 Agua Limpa/Cururu 39.88 50.0% 72 Karelsky Okatysh 62.64 86.2%
30 Whyalla (Iron Duke/Duchess/Knight) 40.02 50.4% 73 Kiruna Pellets 64.23 87.9%
31 Capão Xavier 40.18 51.0% 74 Los Colorados Pellets 66.28 88.6%
32 Keetac Pellets 40.24 51.9% 75 Malmberget Pellets 66.83 89.2%
33 Bailadila 5,14,11c 40.28 53.7% 76 Marcona Pellets 67.68 89.7%
34 Piar Division 40.58 56.0% 77 Mont-Wright Pellets 73.08 91.0%
35 Segredo/João Pereira 40.71 56.9% 78 Karelsky Okatysh Pellets 75.79 92.1%
36 Jangada 40.75 57.4% 79 Carol Lake Pellets 76.70 93.5%
37 Empire Mine Pellets 40.96 58.2% 80 Savage River Pellets 78.98 93.8%
38 Pico Complex 41.07 60.0% 81 Lebedinsky GOK 79.89 95.3%
39 Carajás Pellets 41.53 60.9% 82 Mikhailovsky GOK 87.12 96.8%
40 Alegria / Germano (Samarco) 41.65 61.1% 83 Wabush Mines Pellets 90.78 97.3%
41 Córrego do Feijão 41.78 62.2% 84 Lebedinsky GOK Pellets 93.91 98.7%
42 Donimalai 42.46 62.9% 85 Mikhailovsky GOK Pellets 101.33 100.0%
43 Kedia d'Ijill 43.09 63.6%

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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.34

0
Marandoo
Area C

50
HIYandi

FOB
Channar
Robe River Iron Ore (Pannawonica)
Freight Rate

Tom Price

100
Mount Whaleback/OB30
West Angelas
Confidential: see contract at www.ame.com.au

Carajás

150
Conceição
Cauê/Minas do Meio
Alegria
Casa de Pedra

200
Tamanduá/Capitão do Mato/Abóboras

A - 118
Nominal Terms

Bailadila 5,14,11c
Piar Division

250
Pico Complex
2004 Iron Ore Costs - CIF Japan

Minntac Pellets

300

Cumulative Costed Production, Mt Fe

Sishen

CVRD Southern System Plants Pellets

350

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

Alegria / Germano (Samarco) Pellets

Kiruna Pellets

400
Mont-Wright Pellets
Carol Lake Pellets
Lebedinsky GOK
Lebedinsky GOK Pellets

450
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.51
2004 Iron Ore Costs - CIF Japan by Company (ranked)
Nominal Terms

Costed Cash Costs, US¢/MTU

Company Production Freight CIF
Mt Fe FOB Rate Japan
BHP Billiton 55.0 14.08 13.06 27.14
Rio Tinto 74.2 15.72 13.71 29.43
BlueScope 1.2 17.18 19.37 36.55
CVRD 107.0 10.80 26.31 37.12
Kudremukh Iron Ore Co Ltd 3.3 17.51 20.66 38.17
CSN 9.7 13.14 26.07 39.21
OneSteel Limited 2.1 18.40 21.62 40.02
CVG Ferrominera Orinoco CA 10.7 13.85 26.73 40.58
National Mineral Development Corp 10.8 24.16 16.72 40.88
Kumba Resources 19.4 23.38 17.93 41.31
LKAB 3.9 23.01 22.16 45.17
Portman Limited 3.5 30.61 16.32 46.94
SNIM 6.9 24.84 22.30 47.14
Assmang 3.5 23.87 23.46 47.33
Mount Gibson Iron 0.9 29.27 18.09 47.36
Shougang Hierro-Peru 1.8 21.78 27.16 48.94
Cia Minera del Pacifico SA 1.9 23.04 29.90 52.94
QCM 2.6 29.02 25.46 54.48
Ivanhoe Mines Ltd 0.0 41.02 16.76 57.78
Severstal 0.3 34.52 28.12 62.64
Metalloinvest 6.8 47.92 31.97 79.89

Total/Averages (Non-Agglomerated) 325.7 15.90 20.12 36.02

US Steel Mining Company Pellets 13.5 42.40 - 42.40

CVRD Pellets 28.2 22.02 26.82 48.84
Ispat Inland Inc. Pellets 1.8 50.40 - 50.40
Cleveland-Cliffs Incorporated Pellets 22.1 47.72 2.74 50.46
CVG Ferrominera Orinoco CA Pellets 2.0 24.63 26.95 51.58
BHP Billiton Pellets 4.5 24.96 28.71 53.67
Kudremukh Iron Ore Co Ltd Pellets 1.6 33.41 20.97 54.38
LKAB Pellets 10.5 43.45 21.49 64.95
Cia Minera del Pacifico SA Pellets 2.9 36.22 30.06 66.28
Shougang Hierro-Peru Pellets 2.3 39.33 28.35 67.68
QCM Pellets 5.9 47.56 25.52 73.08
Severstal Pellets 4.8 46.38 29.41 75.79
Rio Tinto Pellets 6.3 52.46 24.24 76.70

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

Table A.51 (Continued)

2004 Iron Ore Costs - CIF Japan by Company (ranked)
Nominal Terms

Costed Cash Costs, US¢/MTU

Company Production Freight CIF
Mt Fe FOB Rate Japan
Ivanhoe Mines Ltd Pellets 1.4 61.80 17.18 78.98
Metalloinvest Pellets 6.3 60.50 33.41 93.91

Total/Averages (Agglomerated) 113.9 39.49 18.31 57.80

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

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

Figure A.35
2004 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

Metalloinvest
Rio Tinto Pellets
95 95
90 90

QCM Pellets
Cleveland-Cliffs Incorporated Pellets
85 85

LKAB Pellets
80 80
National Mineral Development Corp

75 US Steel Mining Company Pellets 75

US¢/MTU

CVG Ferrominera Orinoco CA

70 70
CVRD Pellets
65 65
Kumba Resources

60 60
SNIM

55 55
50 50
CSN
CVRD

45 45
BHP Billiton

Rio Tinto

40 40
35 35
30 30
25 25
20 20
15 15
10 10
5 5
0 0
0 50 100 150 200 250 300 350 400

Cumulative Costed Production, Mt Fe

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

Table A.52
2004 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 133.7 15.49 13.41 28.89
New Zealand 1.2 17.18 19.37 36.55
Brazil 118.0 11.05 26.38 37.43
India 14.1 22.61 17.63 40.25
Venezuela 10.7 13.85 26.73 40.58
Sweden 3.9 23.01 22.16 45.17
South Africa 21.4 22.27 22.97 45.25
Mauritania 6.9 24.84 22.30 47.14
Peru 1.8 21.78 27.16 48.94
Chile 1.9 23.04 29.90 52.94
Canada 3.4 29.33 25.19 54.52
Russia 13.7 51.21 31.79 83.00

Total/Averages (Non-Agglomerated) 330.8 16.59 20.63 37.21

Brazil Pellets 32.7 22.42 27.08 49.50

Venezuela Pellets 2.0 24.63 26.95 51.58
India Pellets 1.6 33.41 20.97 54.38
Sweden Pellets 10.5 43.45 21.49 64.95
Chile Pellets 2.9 36.22 30.06 66.28
Peru Pellets 2.3 39.33 28.35 67.68
Canada Pellets 14.6 52.84 24.79 77.62
Australia Pellets 1.4 61.80 17.18 78.98
Russia Pellets 16.8 59.09 32.18 91.28

Total/Averages (Agglomerated) 84.8 39.39 26.86 66.25

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

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

Figure A.36
2004 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

Russia Pellets
105 105
100 100
95 95

Canada Pellets
Russia
90 90
85 85

Sweden Pellets
80 80
75 75
US¢/MTU

70 70
65 Brazil Pellets 65
Mauritania
South Africa

60 60
55 55
Venezuela

50 50
India
Brazil

45 45
Australia

40 40
35 35
30 30
25 25
20 20
15 15
10 10
5 5
0 0
0 50 100 150 200 250 300 350 400

Cumulative Costed Production, Mt Fe

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

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