nobel's take over offer, page-2

Everyone is focusing on the IO and Mining consumables and Steel chips in this deal. I'd like to talk about the port.

I just had another look at ARI's mining and port update.
The strategic value of the port and the local Whyalla rail infrastructure is very important here and being a fully owned legacy asset,it comes cheap. Sure there are port upgrades , ore storage buildings and rail duplications for the expansion, but the basic footprint already exists.

I know it is a tran-shipment port rather than direct capesize port, and it's capacity is going to be only 13Mt p.a , but it has been cheap to expand/develop.

Not to mention the strategic options with the 1.4km shoreline, the potential future release of the BF port etc etc.

With the SA Government keen to develop further mining projects. this port is strategically well placed for third party business going forward.

When you look at Aquila's Anketell Point proposal, costing around $6B (net of mine development) for a 30MTpa output capesize(future expandable)port, it gives a sense of the scale and cost to develop a workable infrastructure and port for bulk commodities.

IMHO the Whyalla port is a stand out value chip in this takeover battle and something the consortium would be keen to own.