Yowler, this is a copy of a previous post that I made. Hope it helps. Further to this, the geology of the area is not ideal for draglines, and more expensive truck/shovel production would be a more practical option.
"Can you explain to me how you came to the conclusion that the coal has some value?
Do you mean by extracting it at 30Mt per annum?
A quick calculation in REAL numbers is needed to get this in perspective.
30Mt by train is actually processed coal. To get 30mt of processed coal you will need to extract approx 40Mt to allow for loss and dilution, processing etc.
I will be extremely generous here and say the mine has a PRD strip ratio of 15:1 (extremely generous).
This means that CTP would have to remove 600 million m3 of overburden to extract the coal per year. Or 11.5 million m3 per week. So this mine would require some significant equipment to operate at these levels. Lets say a dragline produces 15 to 20M m3 per year, we'll use the 20M m3 number, just to be generous. so that would be 30 draglines. Now you won't get 30 draglines, lol. So let's say you have 5 draglines at 20M m3/yr. That's 100M m3 per year, a long way from a production rate of 600M m3 isn't it. If you like I can build the rest of the production with rope shovels, hydraulic excavators, etc.
At low production figures, this mine will not work, Sav-J agrees on that.
At high production figures, it looks ridiculous.
That is my opinion. DYOR"
CTP Price at posting:
24.0¢ Sentiment: None Disclosure: Not Held
