Hi joeborgo.One cent at a rate of over 20,000 tonnes at a time...

Hi joeborgo.

One cent at a rate of over 20,000 tonnes at a time over terrain that is flat.
What would it cost at 3,480 tonnes at a time?
The Indian rail route is through very high and low terrain by the looks of it.

I realise that wages are different in the Pilbara to India.

You said that diesel would be cheaper in India then in Australia.
Read the reports I posted last week about how much the diesel costs affect the Indian company's.

Citigroup Markets/Equity Research.
The ranking on cost delivered to China shows India and Brazil to be high cost.
When the ranking of suppliers is constructed on the basis of costs delivered to China,a picture emerges which is different again.
India stands out as a major but high cost supplier.
Marginal Producers Costs.
An appreciation of costs at the more marginal producers is also critical.

For India iron ore exports,FOB costs are about US$50/T. Transportation from mine to the port is by far the largest cost component,Ore transported by road may account for half of Indian exports and road haulage transportation costs may account for as much as 90% of costs,and of this Diesel is a third.
Royalties and taxes add us$8/T for high grade,and recent proposals may add another US$10.
This was March 2008.

Last week the Mining minister was asking for all exported iron ore to be stopped and a 20% tax.

As far as back hauling is concerned,there would be a cost incorporated in the tender price to cover not being able to get loads back to the mine site.

Regards
Westcott.