Due to internal delays and errors by Brisbane bank, it was 10 days late with the letter of credit.
This cost Arukan $20,000 in extra bank costs. It relied on this as an excuse to delay shipment by 14 days to cover up its own 10 day delay in shipment, caused by plant failure. And due to that plant failure, Arukan could only ship 30,000 tonnes. China Iron bought the deficit through the China Beijing Metal Exchange (CBMX) at $200 a tonne plus a $100 per tonne shipping charge from a Korean company, although Happy Mining Ltd, an Australian competitor had offered and was able to arrange a substitute, equivalent delivery within a further fourteen days at no extra cost and little inconvenience to China Iron.