There has been plenty of 'discussion' in recent days dealing...

There has been plenty of 'discussion' in recent days dealing with the viability of Wonarah.

It has been argued that if the current RP prices don't improve by the time it has scheduled to go into production (Q1/Q2 2010), the whole project could be a fizzer.

I, with many others, expect that economic conditions will have improved markedly by this time next year, with the price of RP following suit. Of course, it certainly would 'assist' the Wonarah Project greatly if its freight costs could be reduced.

As we know, MAK has an MOU with ATEC(Australian Transport & Energy Corridor Ltd) (see ASX announcement of January 9, 2009) to conduct a Feasibility Study on the construction of a railway line between Wonarah and Tennant Creek.

Per the January '09 announcement, page 2:

'Stage I of the study will be a desktop one and will be completed by 31 May 2009 and will include preliminary financial modelling.'

So, not long to go till we hear some details of what ATEC has been working on.

Also, per MAK's Qrtly Activities Report, page 4, dated April 15, 2009:

'7. RAIL STUDY
During the Quarter, the joint study by Minemakers and Australian Transport and Energy Corridor Pty Ltd (“ATEC”) was advanced. The aim is to examine the financial feasibility of constructing a standard gauge spur line from near Tennant Creek to the minesite. A rail connection would substantially lower freight costs and would remove a production ceiling of about 3Mtpa which is determined by practical road haulage limits on the Barkly Highway.
Current work is directed towards route selection and the Office of the Chief Minister and the CLC has been invited to provide appropriate input.'


In view of the importance in having this Railway constructed, I found it interesting to see that ATEC has recently had discussions with the China Railway Construction Corporation Ltd in Beijing, with meetings occurring......'over a few days'

Go here:
http://www.ateclimited.com.au/html/announcements.html


And what have they been discussing????

---------->'ATEC is in discussion with CRCC about its portfolio of rail infrastructure projects, which include Border Railway, Surat Basin Railway, Wonarah Railway, Northern Mineral Railway and intermodal freight interests.'

Hmmmmmm.

I wonder if the CRCC was the 'Third Party' that Brenden heard about when he went to the RIU Conference last week.

see Brenden's post:
http://www.hotcopper.com.au/post_single.asp?fid=1&tid=896519&msgno=4056851



Cheers to all.