They are ticking off the boxes at present. At low cost. They do not have to drill and they do not have to find stuff. The drilling to date has enough for 60 years at 20Mtpa. It comes back to logistics which are solvable. But at a cost. Which means CAPEX. The rail and the port are third parties. Maybe they can do the same as with the power and get the investment by the third parties on a take it or leave it basis and a per tonne premium.
This reduces the CAPEX to the mining, concentrating and pelletising. The rail, port and power are then OPEX.
At the same time we have the push for lower carbon steel meaning that there is increased demand and increased funding sources.
Every ton of steel produced in 2018 emitted on average 1.85 tons of carbon dioxide, equating to about 8 percent of global carbon dioxide emissions.
With DRI the steel making has a chance of being carbon neutral. This can lead to the steel maker not having to pay for carbon emissions.
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