You are right - the area is sensitive - but I guess that's an issue CBH will have to address.
Transportation is interesting. There's the Mt Isa option as you point out but also slurry pipelines. Century slurries its concenrates down to the Port of Karumba. Perhaps the corridor which it uses could support a second pipeline carrying iron ore concentrates.
Alternatively [and this gets expensive] they could process the concentrates in Mt Isa itself, to produce pig iron.
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