Westcott ????, page-10

Hi Croc.

I think Lion has put it quite well.
Mining.com. Iron ore is not in oversupply May 19th 2015.
A trenchant new report by Minerals Value Service, a London based research firm,urges a more nounced reading of the iron ore supply picture.
Fines drives the iron ore price and it makes up the bulk of supply, but MVS points out that Concentrate, Pellets and Lump output has remained fairly concistent since 2010.
Lump output up by around 20 million tonnes from 2009. Similarly Pellet production has hovered around 200 million tonnes per year since 2010, while annual Concentrate has only increased by around 10% over the same period according to MVS data.

In contrast to fines, demand for Lump and particularly Pellet are expected to rise as steel mills, particularly in China, battle to reduce pollution and increase plant efficiency, the authors note.

Significantly, according to the report, the abundance of cheap fines - particularly grades between 56%-62%- wont displace other classes at mills.
Blast furnace operators are reluctant top make large scale,sudden changes to their burden mix due to the risk of an unforseen negative impact. Therefore, steel mills are unlikely to absorb any further increase in the volume of fines material entering the market.

Fines material achieves the lowest price in the market, tends to provide the least desirable suite of chemical and physical specification and is the most readily available iron ore class in the market place.
For these reasons,steel mills may continue to use the current Lump and Pellet supply, regardless of how low the price of fines becomes, as they seek to maintain a consistant blend.

My input. Sundance Resources has DSO with over 62%Fe infact first 10 years average grade to be jist over 63%Fe.
Sundance Resources as I have said on noumourus occations has High Grade DSO at over 62%Fe. Concentrate and Pellet Feed between 66%Fe and nearly 69%Fe.
Sundance Resources not only have China, India, Japan,Korea, Vietnam and so on in Asia to sell to. Sundance Resources has Europe, Russia and The Middle East/ Arab States as Markets especially for its Concentrate and Pellet Feed.
Noble Group will look after Sundance Resources iron ore sales to Asia. Perhaps Sundance Resources and The Russians will look after sales to Europe and The Middle East/ Arab States.
Could also get help in those areas by the Chinese as they have taken over the London Branch of Standard Bank of South Africa.

I would not be surprised once Stage One DSO Phase has started that whoever funds things pours cash into starting up the Second Phase Itabirite Concentrate and Pellet Feed Plants and Steel Mill.
In The Convention, ALL parties involved in Rail, Port, Mine, SDL and Cameroon Government have to put a percentage of profits into a at arm length Bank Account to help pay for all that is needed for Phase Two Itabirite.

Regards
Westcott.