With regard to high-grade iron ore supply, I have only been watching the market for the last couple of years. One article out of a number that I have read (about the need for the steel industry to quickly and significantly reduce their CO² emissions) was the following:
"China has shifted the focus of its environmental policies to tackle harmful emissions from steel manufacturing plants while still producing the materials needed to feed its growing economy. To meet both its environmental and productivity goals, Chinese steel manufacturers are turning to cleaner-burning, more cost-effective pellets and pellet feed. With the global supply of high-grade iron ore tightening, new resources could be needed to match rising demand."
Is the above article BS in your opinion, or is there some truth to it?
With regard to infrastructure, the SA Government is committed to doing what ever it takes to grow the mining industry in SA. This includes new roads, railways and increasing the bulk port capacity. It is also very clear, that whatever FMG chooses to mine at Vulcan North, a huge spend on infrastructure will be required.
The U grades at Vulcan North are already known (from VUD015). They are as follows:
- 145m at 0.06kg/t U3O8 - 52m at 0.07kg/t U3O8 - 21m at 0.09kg/t U3O8
I have been told that BHP produces approximately 3,500 t of uranium oxide each year at OD. Is this correct?
With all respect to your obvious higher level of expertise, I just don't see the U issue as being insurmountable. On the contrary, this may be a major opportunity (with regard to the nuclear industry and clean energy, which is making a strong comeback in the US and Canada at the moment, due to new technologies, SMR's, etc.)
IMVHO, the upcoming assay results from VUD018 and VUD019 will entirely dictate what FMG decides to do at Vulcan North. This will no doubt include whether or not they are planning to mine the IO as well.
Cheers.
FMG Price at posting:
$19.40 Sentiment: Buy Disclosure: Held
(20min delay)