I for one have certainly not given enough weight to the high grades that TAW can achieve through beneficiation.
All IO related literature currently being published is about the grade of the ore and the huge premium (up to 20% that a 65% Fe product can attract compared with a <= 62% product). The comments below in the mining.com article around our neighbours Simandou in Guinea are interesting.
"A more recent development is the widening gap between different quality fines: The discount to 62% has doubled from around $8 at the start of the year to $16 today.
MVS, a research house, is quoted in the FT as saying the "quality spread" has appeared because "there is currently a lot of lower grade product in the market due to the aggressive expansion plans of Fortescue Metals Group."
World number four producer FMG will hit its target capacity of 155 million tonnes per year in 2014, delivering an additional 51 million tonnes in 2014.
Another factor is a lack of high-grade Chinese concentrate to mix with lower quality supply, which has forced steelmakers to move to opt for high grade ore.
Simandou is as easily exploitable as Australia's Pilbara region and top producer Vale's Brazilian home base. Better still, grades are 65%-plus."
It seems TAW have a product that the world will want and this will insulate us to a good degree from the downturn in the POIO which will likely aid with upcoming off-takes and strategic partnerships.
