Just did a research regarding FOB cost for IKW's project and...

Just did a research regarding FOB cost for IKW's project and could be very low cost due to short rail distance and open cast mining. Should be less than $50.

It currently cost around R115/t to rail coal from Mpumalange to the RBCT.

Source:page 14 of http://resgen.com.au/static/files/assets/61fda9d3/Macquarie_research_111116.pdf

580km by rail from from Mpumalange to the RBCT.

Source: http://www.railway-technology.com/projects/richardsbay-coaline/

IKW Newcastle project 368km by rail to the RBCT.

Rail cost is around R80.


Port cost: Port charge R20/t, a non-RBCT at 10% of the export coal price R80/t.
Source: page 14 of http://resgen.com.au/static/files/assets/61fda9d3/Macquarie_research_111116.pdf

All-in exports via RBCT cost around R180.

open cast mining cost plus others (royalty, logistic etc) is around R120/t if we use RES's figure.
Source: page 8 of http://resgen.com.au/static/files/assets/61fda9d3/Macquarie_research_111116.pdf


So FOB cash cost for IKW is around R300/t. Even I put R100 extram, it's R400/t.

Exchange rate 8:

R300=$37.5
R400=$50

Exchange rate 8.6 (currently)
R300=$34.9
R400=$46.5