This project from GBG........converting magnitite iron ore into pellets is similiar to that of ARH.
UMC deposits are likely to be direct grade....dig it out of the ground/crush and grind the ore for payment of about $80 per tonne.
ARH trying to raise $2 billion to get their project into production.....and much closer to large port facilities. Magnitite ore......prior to being feed into blast furnances are much more expense to process....it involves grinding, scrubbing,floatation, seperation and pelletizing.
BHP and Rio are not involved in production of any magnitite product.....why?
Cleveland Cliffs boss in Australia for the diggers and dealers earlier in the year as saying it will be at least 5 years before any production from aussie magnitite mines.
Cleveland Cliffs produce magnitite pellets in the US where direct grade ore has just about been exhausted.
In a recent FMG presentation.....they are suggesting start up costs of just $150 million for their 10 t 30 mtpa high grade Cloudbreak deposit. Much of FMGs production will need to be mixed with Cloudbreak ore....to get their planned 42 mtpa up to direct shipping standard.
UMC are right in the thick of all this.....without the requirement to built rail and port. Stock will have a big run again soon, I feel.
UMC Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
