Question

1. Arcelor Mittal Dofasco can buy iron ore pellets from Minnesota at US$110 per short ton (2000 pounds) or from Labrador at C$160 per metric tonne (1000 kg). Which source is more expensive and by how much in C$ per metric tonne?                                                                                        (Total: 7 marks)

(1 pound = 0.4536 kg, C$1.1400 = US$1.00)

Weight and currency calculations should be to 4 decimal places; final answer rounded to the nearest cent.

Determine the price of Minnesota ore in C$ per metric tonne.

Answer 1