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Low costs insulate FMG

A dramatic, but highly predictable fall in the price of iron ore has hit every producer of the steel-making material but in the case of Australia’s Fortescue Metals Group (AU:FMG) there is the added pressure of an old problem returning; price discounting on low-grade ore.

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Fortescue's low-cost operations can only help so much with falling iron ore pricing (image: Epigroup)

From the time it was founded 15 years ago, Fortescue has been the target of ‘grade whisperers’, critics who claim it is not only producing ore a notch below its arch-rivals, Rio Tinto (LN:RIO) and BHP

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