Also keep in mind the financial costs involved should be decreased further as reported by Don Lewis in the 16/4/2009 SDL announcement:
"The development of the transportation infrastructure between Mbalam and the port
site is therefore the main development and funding challenge for the Company.
We are currently reviewing two development options for this transport link – a
heavy haul railway and a purpose-specific slurry pipeline. The railway offers
benefits in terms of future expansion but requires larger up-front capital
investment and a longer development timeline. We have recently had a major
contractor on site reviewing the two options and will continue work to refine and
develop the optimal solution. This will include review of our capital cost estimates
which were last updated in early 2008. We are certainly seeing potential for
reduction in our previous capital cost estimates due to significantly more
competitive market conditions.
Our preferred funding strategy for the transport infrastructure is for third party
design, construction and financing. This would move this funding off balance
sheet and leave the Company with a much reduced financing obligation. This
objective forms part of our efforts to introduce strategic partners to the project."
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