GRR Valuation, page-204

Production from Savage River may be never ending but pellet production is only around 2.5mtpa. Now assuming Grange wanted to increase production to say 5mtpa for the sake of picking a figure.
Given all the infrastructure in place at Pt Latta it would seem logical and cheaper to expand pellet production capacity there instead of developing the Southdown magnetite Project. Whether the iron ore came from an expanded Savage River of was brought in from elsewhere is neither here nor there.
I would have thought that the slurry pipeline should always be operating at capacity, and excess production of ore stored at Pt Latta, in case there were problems down the track. It would then be interesting to see what the capacity of the slurry pipeline was.
Given the surplus cash flowing into the company it is a good time to evaluate all options, including expanding or replacing the slurry pipeline.