freight costs, page-4

Hi whitepointer.

It looks by your figures that you are allowing one driver per truck.
I think they will need at least two drivers per trip,other wise one driver is going to be driving between 20 and 24 hours straight x 6 days per week for a month.Will need two drivers in case of any problems.
Trucks are going to need to be new,as they will be breaking down on the trip.
On your estimate of 40 trucks each truck is going to do close to 4,000kl per week,with out a break apart from filling up with fuel.Hauling 40 tonnes of iron ore up hill and down dale is not going to be easy even for new trucks on a 24 hour per day x 6 days per week over one month.
Those figures have to be multiplied by 5 months for the 200,000 tonnes.In 5 months each truck and drivers are looking to do 80,000kl.

I am not sure where you get the pay figures for the drivers,or the $12/t for mining.

As this initial iron ore is lower grade my feeling with removing over burden,stock piling the over burden, drilling,blasting crushing and screening and what ever else the $12p/t looks a bit low.

Your Fuel and driver cost's work out at $17.75 per tonne + $12 for mining = $29.75 per tonne.

Port handling cost's ?
Initial cost of the tenements,Indian Government taxes,pay for NSL staff and Australian taxes.

NSL have made a guess at around $30 per tonne.

The lower the tonnage,the higher cost per tonne of iron ore.

Until NSL do proper feasibility studies on the projects,I find it hard to understand how they can put a cost per tonne on the iron ore.

I understand that you and I are going by figures that have been supplied by NSL and what we can find on the Internet as they have not supplied much in the way of proved up figures.
Every one was under the understanding the ore was going to be moved by rail as they were only talking about a rail system being close by.Now they are saying it will be moved by road for quite some time going by the announcement.

One other thing that is a worry,is the size of the tenements at just over 6 hectares.They will only be able to mine a portion of it because they will impinge on the other land holdings on each side boundary.
I believe in the Pilbara you have to keep around 200mts back from each boundary line.Could be different in India.

I keep thinking of the size compared to my youngest daughters property which is around 6 hectares.

Regards
Westcott.