feb 09 oppies, page-12

It is attractive of course to have a really high demand customer nearby when the grid connection is rather a long drive down the track.

I still feel more comfortable with moving toward the grid option though.
Apart from the likelihood of better prices when hooked in to the 'free market' situation it may also be more forgiving.

I feel like the Devil's Advocate suggesting this but it is possibly a bit early to jump at the convenient BHP option.

Let us suppose a contract was negotiated with BHP to commence supply from the first 50MW power plant. Things may get away to a good start and we could all be feeling happy about this arrangement then, something unexpected puts a spanner in the works of this 50MW system like scaling up or spalling or some other bogey arises which requires a shut down while some remedial steps are taken.
Remembering this is the first base load plant of its kind in this geological region.

If GDY were supplying into the grid it would be dissappointing to lose this cash flow/income for a time but the country wouldn't come to its knees.

However if we were supplying into Olympic Dam then the mine would grind to a halt and the mud would start to fly.
Sure, BHP have all these diesel generators still lying about, mothballed for such an eventuality but by this time their capacity may no longer be sufficient to carry Olympic Dam's increasing demands as BHP would have commenced expansion!

Not such a nice situation.

Just a possible scenario, but this is another reason why I favour 'going for the grid'.

This doesn't mean the BHP option needs be written off, just delayed a few more years until certainty of uninterrupted supply is demonstrated and GDY could have two or three x 50MW power stations up & running.

geojac