explains a lot about what is going on., page-7

Hi (squidd).

Yes read that as well.

If Afferro and the third Company were excepting the fact they would be sharing the Infrastructure with 33% ownership,by contributing to the cost,why would they be happy to just end up paying out other cost's to move their iron ore by rail to port.Then pay a fee to use the port system ? They could own 33% of the total Infrastructure.

Why would the Government allow others free excess to the infrastructure and make it harder for SDL to raise funds to build the infrastructure on their own?

Afferro Capital Cost Impact of stand-alone Rail and Port Scenario
Infrastructure Shared 33% of 105 Mtpa Capacity. Rail = US$714 million, Port off-shore = US$248 million.

Stand-alone (100% of 35 Mtpa Capacity) = Rail US$1,100 Million. Additional Capital for Stand-Alone = Rail US$386 Million.
Port-off-shore = US$371 Million.Additional Capital for Stand-Alone Port-off-shore = US$123 Million.
These figures Exclude land acquisition costs,taxes,EPCM,Owners costs and Contingency costs.

With Shared Rail and Port,Capital Cost Estimates for Afferro are $4,798,000,000.This figure includes Contingency,Owners and Infrastructure EPCM Costs.
Includes Concentrators for DSO,SAP and converting SAP Concentrator to a BIF Concentrator.

Sustaining Capital Cost and Mining Fleet Replacement Capital Cost = US$2,063,000,000.
Total Capital Cost = US$6,861,000,000. With another cost for Environmental and Social Fund of US$166 Million and Working Capital of US$125 Million.

Preliminary Financial Model Output - Funding and Cost - Shared Rail and Port. Funding Requirement Unit US$3,941,000,000 for 35 Mtpa. Payback 4 years.
Operating Costs = US$ product US$32.68t,Average Royalty Cost = US$product US$2.02/t.

Regards
Westcott.