The biggest problem always has and will forever more be that ROM of cost of ore. The cost in every part of this project once blow out afteer blow out occurred has saddled it with too much debt and it is just too high on the cost curve. Simply, you cannot spend 3 or 4 times your rivals to earn only a 30% premium. South Flank is an 80 mtpa mine, high grade ore and costing US$3.4 bn. KML has about the same expenditure for 8 mtpa, overspent on infrastructure and the mining cost is 4x that of BHP. It's premium over BHP would be less than 20%. The numbers just don't work!!!
https://www.australianmining.com.au/news/bhp-hands-out-south-flank-contract-to-clough/
The biggest problem always has and will forever more be that ROM...
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