I hear what you are saying. People who have given out about their experience in the mining industry should know the difference between DSO and Magnetite. Working for BHP,I would have thought would give them the knowledge to know the difference.
They are also going to be relying on sourcing iron ore from others to make up their iron ore inventory to process 200,000 tonnes per year.
These tenements were never going to be big enough to come to much,even if it was all DSO.Look at the sizes of the two tenements.That I imagine is why they have had to construct the beneficiation plant on another site. If India has similar regulations to Australia as far as mining towards the tenement boundary,the app:six hectares per site would be cut back to around 4/4.5 hectares to mine at each tenement.
What happened to the due diligence that was done on each tenement before committing to buy them. Surely you would do trenching,laboratory checks on the iron ore samples first,and other checks to be sure it was DSO,not low grade Magnetite.Anyone with knowledge should be able to tell by looking at samples if it is DSO or low grade Magnetite I would have thought.
If beneficiation only produces 58%Fe,what grade Fe is it to start with?A typical lowish grade of 23 to 30%Fe usually records a beneficiated grade of 65 to 70%Fe Magnetite concentrate/pellets.
Regards Westcott.
NSL Price at posting:
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