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distance of wonarah to a port = higher opex, lower profit...

  1. 262 Posts.
    distance of wonarah to a port = higher opex, lower profit margins. using the wet process or just producing phosphate rock, then yes the transport issue is a concern.
    however, if one is producing SSP with the IHP process at half the operating cost, then the transport issue really isnt a major problem; when profit margins are > 150%.
    Of course, after years of production, a rail line will be built from tennant creek lowering opex. along with other enhancements.

    From memory i think the trucking of ore from Wonarah to Tennant creek was $50 per tonne.. at $1000 per tonne of SSP, this is only 5% of margin costs.

    thoughts?

 
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