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clock Created with Sketch. 12/04/24
18:43
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Originally posted by Barry81:
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the report also provides a insight into why hebang would be interest in wonarah:CMSB’s entry into the phosphate business via MPAS is timely in light of a shortage of supply wonarah is in a sparsely populated high photovoltaic perfect for solar energy which would clean up the YP process, reduce cost and assure energy supply.Raw materials are expected to make up the bulk of the costs at about 50%. For every 1 tonne of yellow phosphorus, wonarah ore is high grade with low impurities however it does contain a high level of silica such that i don't think you would need to add to the product for the furnace. The highest cost in the wonarah DSO was transport however this is mitigated if the YP plant is built at site.Being the only integrated phosphate complex in Malaysia, this gives MPAS an advantage of being Supply could tighten up particularly with LFP Batteries becoming more popular. As noted not many new projects are coming on stream, this is a good way for Hebang to ensure future supply. Also as you noted Hebang have western shareholders so this project would represent a stable jurisdiction to start up in.
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Hebang invests $2m to get access to a secure phosphate supply, and land on which to build a YP plant with minimal freight costs for feedstock. AEV gets lease payments from the Hebang plant and sells them the feedstock. Hebang gets capital appreciation on their AEV investment when the project starts producing, and potential dividends down the track. Unrealistic scenario?
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