PLV are hoping to secure Cockatoo island from Cliffs as they will have completed mining operations there by 2012.
The way I see it, Cliffs have the environmental responsibility (rehabilitation, demolition of ship loader, demolition of housing etc. etc.) for Cockatoo Island, if they sign the environmental bond ($40M) over the island to PLV, PLV could then use the existing infrastructure i.e. power station, airstrip, housing, ship loader etc. PLV would lower it's infra spend up front and could also lower the environmental impact on Irvine. PLV would do the clean up of Cockatoo, they would have to remove all existing infrastructure and rehab the island over the life of the Irvine project. It really is just a drop in the ocean compared to the benefit that they would get....
So it is a win win for both companies as Cliffs save money, PLV save money up front and can spread that cost over the life of mine, which the way it is looking could be 20 plus years.
PLV could ship all DSO from the Isthmus, via Cockatoo for the life of mine. The primary crusher would be on Cockatoo, basically drill, blast and load on Irvine, then it gets crushed, screened and exported from Cockatoo... Saves power on Irvine by using the existing power station on Cockatoo :) There would still need to be a lot of infrastructure on Irvine but it will be just for the bene plant and associated plant.... This will lower the enviro foot print... A very wise move !!!! There will be no accommodation on Irvine, there would be a ferry to Cockatoo. 6 klm's
So everyone would fly in/ out from Broome to Cockatoo, just like Cliffs do now. Chopper would not be needed, maybe every now and then but not full time like now. The mainland logistics base, I imagine would be in Broome.
Cheers ..
PLV Price at posting:
69.8¢ Sentiment: Buy Disclosure: Held