Talison then Gippsland. The customers for tantalum will pay Talison in the short term because they have no choice in the medium and long term they will go with the cheaper choice if they can get it.
Gippsland Abu dabbab deposit has tin and feldspar along with the tantalum the deposit is so good the waste ratio is 0.826:1.
The general costs of operating in Egypt are lower than Australia and that's not even including all the various tax breaks Gippsland are getting from the Egyptian government.
The Abu dabbab deposit is very easily mineable simple open pit, easy separation of minerals and mineralization is so consistent mining will take place by eye rather than chemical control.
Gippsland have another tantalum deposit at Nuweibi they say they are not going to develop for another ten years because they have so much tantalum at Abu dabbab.
The customers of Talison are not very happy with being held to ransom either whats the betting any offtake agreements do not go past 2011.
In spite of poor management of Gippsland, the company are looking to be the second biggest tantalum producer in the world then the biggest. Talison may survive as a tantalum producer long term if there is enough demand for both companies, if there is not enough goodbye Talison.
Some info on Talison.
http://www.minesite.com/fileadmin/content/pdfs/Brokers_Notes_July08/Denis_Zogbi_080730_V.pdf
http://www.talison.com.au
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