Having had the time to read the study I don't think much is different from the previous feasibility studies other than cost escalations matched by price escalations.
The key takeaways are that mining and beneficiation costs are in the range of $33 to $66. Transport costs on DRI are $36-$76 per tonne so more than half of all costs.
By reducing transport costs and value adding on site you eliminate half of the input cost to utilise the Fe units.
The input costs for the Hi-smelt plant at 68% concentrate, are $33 to $66 to produce a green pig iron valued at US$480-490 today.
I think those input costs look attractive, as I feared operating costs may have moved much higher due to post COVID cost increases.
I don't know much about Hi-smelt costs operating costs, so would be interested in any input on those but assumed around $200 per tonne.
All in all it looks like a pretty good endorsement of the value add strategy.
The scoping study is based on DRI for its entire life, which is not what the larger development scenario is based upon.
Therefore the scoping study should be re-scoped to look at DRI for a few years transitioning into a Hi-smelt operation. I think the numbers would probably look a lot more attractive if you looked at in those terms.
I understand the reasons for the sell-off but also believe that there are some nice nuggets of information that can be derived from a close read.
Given the costs involved I get the feeling they may be looking to sell an interest in the project for development assistance. Just a hunch
Anyway good luck to all.
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