AVL 6.67% 1.6¢ australian vanadium limited

AVL news, page-705

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    As you must be aware from the just released 1st phase of the OFS the refinery will be located at Tenindewa. Which obviously means if this show goes ahead the 900,000 tp/a of cons will be trucked to Tenindewa.

    The 75 cent diesel, 79c actually was for mining machinery where there is a 48.8 cent tax rebate (off road use) see page 99 of the BFS. I imagine the diesel prices are higher now. On page 100 of the BFS the quotes for haulage to the refinery is mentioned but no figures.

    The GHG emissions will be approx 16,000 tonnes p/a. At the moment 1.5mtp/a of iron ore is being trucked from Wiluna to the port a distance of 890 km.

    I agree blocks 70 and 80 will probably be mined first which is expected to produce a concentrate of up to 1.6% V205 and 60% fe.

    As has been mentioned before Fenix uses 200t road trains to transport 1.3mt p/a of iron ore 490km to the Geraldton port for 10cents per tonne per km.

    Using the current price of 60% fe and 15 cents per tonne per km haulage to the refinery then port.

    60% fe..............us$72 FOB.
    us$72 * 1.48....a$107 FOB.
    less storage.....a$10 p/t.
    transport.........a$74 p/t.
    total..................a$23 p/t win.


    Also the advantages of locating the refinery at Tenindewa are lower gas prices, local worforce no FIFO and lower transport cost for reagents eg soda ash.
    One of the conditions for $49m Federal grant is the refinery built so that is able to use hydrogen. Maybe in the future hydrogen will be used as a reductant in the next step roasting process of the FeTi to upgrade the Fe as done in the lab testing.
 
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