cost

Gindalbie Metals (ASX:GBG) announced a major cost blow out in a joint venture with Ansteel, jumping 62 percent in operating costs for its Karara iron ore project. The miner confirmed their previous estimate of $2.57 million in costs. Gindalbie is the latest addition to the growing list of cost blow outs, which includes major players such as BHP and Woodside.

Rio Tinto (ASX:RIO) says that labour shortages and the soaring Australian dollar are responsible for rising costs, and the companies expansion plans are getting blocked as a result.

In a Perth presentation yesterday, Iron ore chief Sam Walsh said that projects will be difficult to accomplish. "From a financing viewpoint, we are seeing some projects over-running their costs," said Walsh.

"All this means the projects are going to be harder to bring on."

Qantas (ASX:QAN) offered voluntary redundancies in response to high fuel costs and natural disasters in Japan, Australia and New Zealand. The airline will trim down its projects due to the reduced demand in travel.

Suncorp (ASX:SUN) said that the cost of reinsurance due to the Christchurch earthquake is around $92.1 million. In February its reinsurance program limited its exposure In New Zealand by $NZ60 million. However its was too early to estimate the financial impact of the earthquake during that time. The disaster struck Christchurch with a 6.3 magnitude last February 22, taking more than 180 lives. The total cost of rebuilding has been estimated to be at $NZ16 billion.

Developers have complained of the unexpected costs in getting fibre-ready for Telstra (ASX:TLS) and NBN Co's venture in greenfield estates.

In a parliamentary inquiry, several members of the the Housing Industry Association said that Tesltra asked them to pay from $900 to $1000 for installing pit and pipes. These were previously provided free of charge under the universal service obligation.

Rio Tinto (RIO), one of the largest mining companies of Australia have seen the beginning of a new era for its iron ore operations as the first load of iron ore was dispatched from its new Mesa A/Warramboo mine which is located 50 km. west of the township of Pannawonica. It is to be mentioned that the Mesa A/Warramboo is the part of the Robe River Joint Venture where Rio Tinto holds 53 percent ownership.