Auto, In regards to the FOB cost you have added to production...

Auto,
In regards to the FOB cost you have added to production price, were you advised to add the $15-$20 cost to GRR specifically?

I ask this because GRR sells FOB via Port Latta.  The ore concentrate is transported via the slurry pipeline to Port Latta where the pelletising plant is located.  A slurry pipline is one of the cheapest methods of transporting ore.  

Given the transportation of the ore via the slurry pipline is a part of processing to the final sellable product I would expect that it should be part of the C1 costs as opposed to an additional cost in the circumstances.  If anyone can confirm this, it would be appreciated.

I have included details below from GRR's website in relation to the ore processing:

Processing

Processing facilities at Grange Resources' Savage River and Port Latta locations consist of the Primary Crusher, Concentrator, Slurry Pipeline and Pelletising Plant.

Primary Crusher: Ore from the northern section of the mine is tipped into an Allis Chalmers 54/74 gyratory primary crusher, which is located near the rim of the pit. When the iron ore has been crushed to a maximum size of 200 millimetres, it is transported to the 100,000 tonne capacity crushed ore stockpile at the concentrator via a 1.3 kilometre overland conveyor. Ore from the southern section is crushed in an Allis Chalmers 54/62 gyratory crusher before conveyance to the crushed ores stockpile.

Concentrator: Crushed ore from the stockpile is reclaimed via a tunnel system and fed into the concentrator. It is initially ground by two Hardinge 9.75 metre x 3.66 metre autogenous grinding mills, then by two Nordberg 8.84 metre x 3.96 metre ball mills. Magnetic separators then separate the magnetite from the gangue and the gangue is pumped to the tailings dam.

Slurry Pipeline: The concentrate slurry from the concentrator is pumped 83km through a 229 millimetre internal diameter slurry pipeline to the pellet plant at Port Latta - transportation time is approximately 14 hours.

Pelletising Plant: At Port Latta, filtered concentrate is formed into pellets (with bentonite as a binder) and fed to one of the five Midland-Ross vertical shaft pellet furnaces where they undergo approximately 4.5 hours of heat- induced processing. Finished pellets are screened to remove excess fine and coarse material then transferred by conveyor and a rail-mounted traveling/slewing stacker onto the finished product stockpile to cool and await shipment.