APG ramblingsTo my mind this June 10 ? ly and the ?international...

APG ramblings

To my mind this June 10 ? ly and the ?international major? means that the overseas company wishes to entirely tie up the Newcastle plant for a year trailing the Reduced Iron process prior to construction of an APG Plant integrated onsite with the mega steel mill.

One Steel appears to be playing hardball and refusing to sign up with APG. This announcement creates a small amount of tension against that and thus has some degree of blow back and One Steel risk being frozen out from the APG process for some time.

Tewks talks about economics. If it helps work the economics the approx logistics are as follows.

There is a net outflow of empty containers from Australia. A 20 ft container can carry 25 tonne and would cost $800 to move from Singapore to Sydney. Should it be moved empty it would cost $270.
As the word char has been mentioned it would appear that APG will move into the business of making metallurgical coke. It would be silly to bring coal to Newcastle so I surmise that the imported coal ( for test work) is country specific (say Indian) and they intend to upgrade local coal and reduce imports of Australian coal.

Other matters.

I called into the plant recently and yes the Briquetting machine is operational ? they ran it for me. It will cost a fair sum to build the enclosing shed.

I think we are at the point where if APG finished the plant all the money at the bank would be expended and therefore a situation could arise of trading while insolvent without the certainty of offtake contracts. Far better to stall a bit longer till the contract is signed and provide more certainty.