I'm not suggesting the larger the mine output the more complicated the crushing / milling circuit will be. In this case, 160mtpa will require multiple primary crushers, secondary crushers and impact crushes prior to going into multiple ball mills. This can all be done but, with massive costs for capital equipment. Water will be the biggest problem, Mining in Australia water is always a problem. So easy to say "Water will no be a problem" and move on. If HIO was planning to ship a finished product of either fines or pellets then water would not be as much of a concern. (You would simply build bigger damns and battle with evaporation). Taking 20mtpa of an iron ore product of say 140 microns adding water to make is a pumpable slurry takes a massive amount water. A bit of research of fluid dynamics should give you an answer... Normally the water is recycled in processing pondages where evaporation is the only enemy which is still a major factor that needs to be over come however, HIO will be sending all the water down the slurry line so no option of recycling... I would want HIO's management to state the water requirements and explain where this water will come from. Previous endeavours have shown that the artesian basin will not be able to supply this kind of demand. The idea of sending the water back again after the dewatering plant could be considered but again this will add huge costs... Remember no water = no mine..
As for Tran's flippant comments about the cost of the slurry pipe being handled by a third party.... Before the cost can be calculated you need to get land owners approval. only then can you start to map out the route available then cost it. Slurry pipes over this length will be hugely expensive to build and massive amounts of power will be required to run the pumping stations. You also need to get power to these pumping stations. Again, a little research of fluid dynamics and calculate the power required to move 60,000,000 m3 of water over 450kms.... Then add the friction losses of the slurry... This in not a cheaper option than rail, this has been proven time and time again. HIO plan to use a slurry pipe as there is no other option due to limitations of the rail line... This will not reduce the "all in cost" per tonne.
Tran - My main point still remains, What is the cost of this mega 160mtpa open cut mine, processing plant and slurry pipe? This size of project is massive, BHP or RIO could pull this off but can a little explorer???
I've given you my estimate of $8 -10 billion, how much do you think Tran???
I am not an accountant I'm an engineer, I have spent many years designing crushing and screening circuits and have visited hundreds of mines. Again, I hope HIO can pull this off, if they do I will be tendering for some of the capital equipment but I don't think this will fly at 20mtpa.
Read ROY's DFS as HIO's plan is so similar using a slurry pipe to port, off site dewatering plant etc, etc, but HIO's is now for twice the tonnage. ROY could not do it and the project got mothballed. Food for thought..
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