Is that a given ??
If so, what is driving the higher costs ??
The "experts" say too many projects occurring at once driving prices higher.
Poor capital productivity.
Poor management and lack of R&D to improve efficiencies.
The easy stuff has already been mined making the remaining stuff dearer to process. Diesel Costs.
Anyhow BHP Billiton have supplied a transcript of what Kloppers actually said in Europe that doesn't include any editorialising from a "reporter".
http://www.abc.net.au/news/2012-08-24/marius-kloppers-on-australian-commodities/4220828?section=business
EMMA ROWLEY, THE TELEGRAPH: Back to the Olympic Dam again, sorry. How much has Australian mining tax played into that decision?
MARIUS KLOPPERS: It is not subject to mining tax. Mining tax is only on coal and iron ore, nothing to do with that. This is about capex escalation and efficiencies that have made that an unviable project.
EMMA ROWLEY: I have seen some commentary and the political reaction.
MARIUS KLOPPERS: I have seen that. I am just stating the facts as they are.
This is an escalation in capex, driven by labour efficiencies, tight labour market, tight supplier market, high exchange rates and high diesel costs, which has made a concept we thought would work unviable.
EMMA ROWLEY: There are people who think it is politically motivated.
MARIUS KLOPPERS: You have to ask them. I can tell you it is capex.
EMMA ROWLEY: There have been reports from Deutsche saying that Australia might be heading into recession. Do you have a view on that?
MARIUS KLOPPERS: I do think that what I am seeing on the Eastern Seaboard in Australia is that the coal industry has been very heavily impacted by lower prices, higher operating costs, carbon taxes and increased royalties.