Based on their 2017 BFS (snippet below), if the CAPEX for...

Based on their 2017 BFS (snippet below), if the CAPEX for construction at Teeside is estimated at USD152 million, would it in fact be cheaper due to cheaper raw material sourcing, labour and energy, to construct at Ngualla as an integrated approach?

ASX.TNG is doing exactly that - they initially had a concentrate generation at the mine site which was then to be railriaded up to Darwin for downstream processing.



The only real downside, is the sovreign risk increases. This means in real terms that:
(1) Financing for a Tanzanian refinery could be harder resulting in potentially higher WACC.
(2) GoT could nationalise this at any time - granted that this would be shooting themselves in the foot.

I'm not going to be a keyboard warrier and make statements such "it should be easy enough to come up with a figure for a Tanzanian refinery". That's not how its done. To conduct a FS for a Tanz refinery, would need to be done from the ground up. There are a hundred and one variables to be considered when doing a FS for a new region.
- Regulations
- Labour conditions
- Labour skills
- currency fluctuations
- raw material availability
- royalties
and I'm sure, many many more. I'll leave that to the punter as an educational excercise.