project iron boomerang

This project (noted on the CTP thread) if followed through to completion will have a profound effect on the logistic and ore sales base of all Pilbara juniors. Has the potential to upstage the proposed broad band rollout...mindblowing!


http://www.eastwestlineparks.com.au/

"Project Iron Boomerang
The Overall Concept (Posted on 10th August 2009)
To establish first stage iron and steel smelting parks
near Newman Fortescue River Valley in Western Australia (WA) and at Abbot Point Precinct in Queensland (QLD) (near Bowen, N-Qld).
linked by a new heavy gauge railway line
over 3,300 kilometres West to East
from Port Hedland (spur to Dampier) in WA to Abbot Point in QLD
linking Australia's export iron ore - coking/thermal coal mines will also utilise both the sustainable and abundant natural gases available
coal seam methane gas in Queensland
natural gas in Western Australia
International and domestic iron and steel producers are invited to form and lead a steelmakers' equal share holding partnership consortium with partners from China, India, Japan, South Korea, East Asia, USA and EU
steelmakers will design, build and construct their first-stage slab steel plants within these rail connected precincts the precincts will exist within the stable political environment of Australia.
Australia is the world's leading export steelmaking commodity resource economy
provides long-term sustainable supply,
containing approximately 40% of the world's seaborne iron ores around 60% of the world's seaborne quality coking coals
This will greatly benefit the mutual exporting and importing steelmaking nations' sustainable management of the competitive steel integrated businesses
The project will deliver massive business efficiencies of scale seldom offered or seen
There is also the bonus delivery of environmental net gains, relative to the current seaborne supply chain of Australian iron and steel making ores
This project concept is designed to generate significant positive global scale reductions of climate change sinks ("carbon credits") by dramatically improving the current supply chain bulk handling inefficiencies. The full extent of the gain has yet to be fully quantified in the Pre-Feasibility Study
Steelmakers will:
Build new blast furnaces in the smelter parks
Build, own and independantly control and operate the blast furnaces
East West Line Parks will:
Build, own and operate the rail link and the smelter park precincts
Provide logistics and other services to the smelters
Common user industrial support infrastructure (stock & slab yards, coke ovens, co-gen power station, sinter plant, oxygen plant, etc) is to be owned/operated on a collaborative basis to maximise precinct advantage economics."

Benefits
Economic Advantages

The present Australian coal and iron ore seaborne export system has the steel mills making 5 to 7 major ore freight and handlings from Australia's east or west coast mine sites to their domestic or overseas iron making operations. The EW rail system will involve only 2-3 major freight and handlings for only one major ore resource, directly reducing present bulk handling and transport costs significantly. The EW rail system will be fully utilised with full loads in both directions, whilst currently the massive bulk ships and the trains have empty trip returns to Australia for re-loading.

EW Line parks require significant transporting of only one resource commodity. Either iron ore or coal will be carried on long distance rail line, which will be located at a terminus park/precinct designated sites where the other commodity resides. In addition to the economies of prime payloads in both directions, the rail provides for cost effective transportation of waste for deposit into empty mine sites.

Further transport advantages and cost effective means of opening new markets arise because ships can be up to three times smaller, with three times less sea distances on some routes compared to the present raw material bulk carriers. This opens up direct access routes via the Suez and Panama Canals to East coast USA & EEC - Mediterranean markets. Such ships can then support normal back freight shipping loadings with freight cost efficiencies. The project opens up new global market access opportunities and marketing delivery strategies not currently available!

Major savings in the construction and operation of smelters occur by locating six or more blast furnace units in close proximity in each precinct. By sharing plant and equipment, services and infrastructures, significant savings associated with reduced production, energy and operations costs occur. Precinct Operational Shared Cost Economics! Environmental outcomes emulate these efficiencies.


Capital, Operational Expenditures and Environmental Savings

Substantial capital and operational savings will occur in expenditures and environmental savings, to mutual shared long-term sustainable advantage.

Key PIB economic concept and strategy attributes offer unique project first-stage global steel industry combined competitive advantages!

Supply chain consolidations of coking and thermal coals + iron ore and natural gas/coal-seam-methane gases, indicating around 30% savings.

Pre-fabrication and modular construction of blast furnace units. 5 100-200 mt bolt-together modules offer $300m unit savings per blast furnace.

Standardisation of blast furnaces with flexibility for internal operations and quality adjustments will offer at least $400m unit savings per blast furnace.

Blending beneficiations of magnetite and hematite ores for long-term blast furnace internal operational economics, with expected internal OPEX savings of $122m per blast furnace pa.

Precinct economics for OPEX and CAPEX shared services have the potential of saving hundreds of millions!

Carbon credits generated on new for old replacements and from the above features will be an additional positive attribute that has not yet been quantified!

Motsa