MINER'S RIGHT

Rio tops class for iron ore margins

The poisonous effect of discounts on low-grade iron ore has been laid bare in a fresh study of the industry that focusses on breakeven prices to reveal that the sector leader, Rio Tinto, is operating at a breakeven price close to half that of its Australian competitor, Fortescue Metals Group.

 Grade is king: Rio's grade puts it ahead of its peers in terms of margin

Grade is king: Rio's grade puts it ahead of its peers in terms of margin

According to Macquarie Bank, Rio Tinto's breakeven price, which is the iron ore price it needs to start earning a profit, is US$28 per tonne, handsomely below the latest price of $78.43/t for high-grade...

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