Completely a different kettle of fish. WA stuff is dig it up and ship it out. Cheap and nasty in an industry that has been cheap and nasty. However the industry has been told that they can no longer be nasty or they will pay dearly for it. Thus there is no more cheap and nasty. There will be a transition period and time to adapt. There will be a time when the penalty for emissions will outweigh the cost of being clean. This resource is only one of three in the world of this quality. It now has significant quantity. The product will attract a premium because it can be used by a cleaner technology and another premium for it's FE% and another bonus for it's purity. This is part of the new realm. Now it has sufficient quantity to justify the investment in the logistics stream. The rail needs to be duplicated. This is either by twinning the line or just building our own line alongside the existing line. So the rail will be there, one way or the other. It is just a matter of underwriting the capacity. The port has another 100 Mtpa capacity by putting in another two berths. Again it is a matter of underwriting the capacity. The electricity again is a a matter of underwriting capacity. Realistically 100Mtpa is the maximum output. It would take about 8 years to get to this capacity, but thereafter we would have a 80 year mine life. If you had a rail line and were asked to double the capacity and we will give you an extra 100Mtpa or we will build alongside of you, what would your answer be? Ditto with the port. Would you increase capacity or see the ore go to Port Cartier or to a new port to the east. We can get this mine up and running. We just cannot do it ourselves. After speaking with management, I am happy that their intent is not give it away.
CLE Price at posting:
0.1¢ Sentiment: Buy Disclosure: Held
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