indian consortium scrapsrock phosphate bid, page-4

If you are going to spend $4 billion on a project, you would expect a return of at least 5% on your money (assuming that is what you could make at a minimum on bonds or bank deposits). So this project would be expected to make at least 200 million profit per year from shipping rock phosphate. If the profit on the rock phosphate was only $20 per tonne then you are looking at at least 10 million tonnes of RP which is ridiculous. Clearly the market is forecasting the price of Rock Phosphate to rise to at least $150 per tonne FOB Morrocco or more.

For all those people popping up and spouting RP prices, remember that the price in one country is different from another. We are shipping a bulk commodity not milk from your local Woolies. Quality RP is priced at US$175-190 on the India doorstep translating to a US$145+ price here due to $30 per tonne shipping (based on IPL shipping DAP from Australia in its latest quotes).

NZ will be paying at least $20 more due to distance factors and Ballance NZ req 0.5 mil tonnes RP per year.