The only problem with dedicating one train to Havieron ore exclusively is that initially Havieron ore will only be supplied at 3mtpa (signposted as rising to 4.5mtpa in the much anticipated DFS due in Q4) so that second 11mtpa train would be greatly under utilised.
Shaun has flagged that the Havieron ore will need extra time in the ball-mill due to it's higher grade and metallurgy so it wouldn't be capable of 11mtpa, but it would still not be fully used.
Once the train is set to accept and process the Havieron ore then I think it couldn't accept the Telfer/other ore without modifications (I'm open to correction if that is wrong), but that is the current plan until we hear otherwise.
Shinybits on GGPChat seems to have suggested that if the 2 current trains are running full pelt with Telfer ore and it can be demonstrated they can continue to run without the Havieron ore for the foreseeable future, then it "might" make sense to develop an additional train at Telfer (lower capacity than current) to deal with it. It could be built in parallel as the current two trains continue running thus protecting the FCF as modifying one would entail halving current production.
I accept this is all speculation until we see the DFS but (and I accept this is a big BUT) it would make sense if the ore is available at Telfer. Imagine keeping the current trains operating as they currently are (big volumes of lower grade) and then bringing online a third train which would be optimised with all the newer tech available to treat the much higher grade Havieron ore at 3-4.5mtpa - we know there is up to 20 years production already delineated from there.
Lots of moving parts, but a hell of a lot to play for here - ATB Paddy
GGP Price at posting:
$7.03 Sentiment: Buy Disclosure: Held
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