freight costs, page-54

Peteai

You first post was about the fact that you thought the freight costs looked a bit excessive. Fair enough given they were based on peak oil prices, but the simple fact is that all up freight costs will be around about 70%+ of the production costs based on current projections.

MAK running a transport operation will not make it substantially cheaper. In fact the reverse is probably true.

There are cheaper long term alternatives but unless there's a rail or a slurry line thats recently been constructed alongside the Barkly Hwy, the set up costs rule them out in the interim.

The $60m setup cost for the mine will be hard enough to find without looking for another $40m for a trucking operation or $250m for a rail line.

Later on maybe depending on profit levels (if any!!!!!)