CARD #3 - Page 3 4. Peruvian iron ore is also a substantial contributor to profits, but these earnings have declined sharply from the peak earnings achieved in 1961. Only in small measure is this lower profit attributable to internal conditions in Peru. The major causal factors are found in the changing competitive conditions that have affected the international iron ore industry and even more important is the fact that during the transition from a direct shipping ore operation to one in which virtually all of the ore must be beneficiated before it can be sold, production costs have increased and profit margins have narrowed.