I agree bigvic.. especially about the price of operating in...

I agree bigvic.. especially about the price of operating in europe.

However, TLG having a low strip ratio, high grade and well-placed near manufacture is an advantage..

Africa has low cost of staff, and low grades but with bigger deposits..

In the end I feel it will come down to how much processing costs vs mining costs and how much capital you require to start up for X-tonnes per year.

Capital is still expensive in Africa, you still need the trucks, infrastructure, processing plant etc which will be supplied from outside-africa.. However in saying that, africa probably has far less mining regulation also, so they can get to the field quicker (so to speak).

So really seeing as graphite is a small and _currently_ expensive market, once 1 player gets in with a decent tonnage, say 20% of the current world production.. the price will fall dramatically..

block other players capital raising chances..

All IMO of-course. Economies of scale comes into it, but when the entire world consumption is so low, I'd say first in best dressed.. whoever that may be.