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How is Sustaining Capital Expenditure (SIB) handled in the Iron Ore Costs Tool margin calculation?

Treatment of Sustaining Capex in Total Cash Cost and Operating Margin Calculations for Iron Ore

Krishna Sharma avatar
Written by Krishna Sharma
Updated over a month ago

Sustaining Capital Expenditure is not included in the Total Cash Cost or Operating Margin calculations.

  • Total Cash Cost includes direct cash costs related to mining, processing, and transport of the marketable product (e.g., mining, processing, transport, port charges, overheads, and other specific charges) plus royalties and levies.

  • Operating Margin is calculated as revenue minus total cash cost.

To view Sustaining Capex, navigate to the Capital Costs menu in the tool and select Sustaining Capex from the Metric dropdown on the left.

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