ceres wind farm near ardrossan

Bornite

Wind farms are producing electricity at a cheaper price at times than coal and gas. Currently the capacity of the winds farms in Sth Aust meet 20% of demand and when there is plenty of wind power the gas and coal reduce their generating capacity or switch off altogether.

Also REpower will have an undersea cable to Adelaide to carry the power (40 miles)

I think RXM should do some fact finding with REpower to see if anything is feasable and what prices may be avalaible. If another company can put up the capital for a power source then it makes the money side of things better.

We will probably need base line power but the transmission line will have to increase capacity. I dont know which location will be the feed in point. ie South Hummocks sub station 40 miles away or somewhere in the mid north of Sth Aust or all the way from Pt Augusta 170 miles away.
The latter will cost a lot of capital.

As there are power stations in Adelaide rxm should explore whether its feasable to share REpower cable across the gulf for base power to reduce capital costs and whether they can access cheap wind power when its availabe thus reducing BASE LOAD operating costs.

Thus savings in capital and operating cost could make to project much more attractive and the speculation about needing $900 million to get the project started may be overstated

RXM can start small like AGO or IFE and mine the southern part where there is 100mt ore of 1.2%cu equivalent and parts up to 3% cu and its only 20 to 200 metres below the surface. Thus with good grades and low operating costs
it is attractive poposition. So those guys on OZL expecting a t/o or j/v with a 30% margin on current SP need to up the figures.




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