ansteel mill, page-8

There are some very compelling reasons why ANSTELL would want to undertake a BFS for establishing a steel mill in WA.

1-shipping costs of steel to chinese users would be much cheaper than iron ore for converting to steel as steel is about x3 times denser than iron ore hence it would only take 1 ship instead of 3 to transport to china.

2-steelmaking input costs for electricty and coal would be much cheaper as they would be scourced locally direct instead of LNG and coal having to be 1st imported into china and then used for make steel.

3-shipping costs of steel to chinese international markets would be much cheaper if the steel is exported directly from australia instead of the iron ore and all the energy inputs 1st having to be imported to china and then converted into steel and then exported to international markets.

4-china would be able to shake off some of the "DUMPER" tag if some its steel was actually made in australia.

5-the WA gov would most likely provide many concessions and incentives to establish a local steel industry.

6-ANSTEEL would have close by, a large long term supply of iron ore from KARARA.