I believe the BFS is running behind schedule, previous ASX announcement indicated a number of technical issues that need to be addressed before they can achieve steady state performance which is critical to completion of the BFS.
From what I understand, the Burnie demonstration plant has been closed over the Xmas period. My guess is, they have had techies tweaking the system during this break.
The Smorgan Steel announcemnt. As far as I am concerned this leaves a few things up in the air and omits a fair bit of detail. Overall the tone sounds good, that is why the SP spiked and then pulled back as people studied the real implications. For starters, it sounds great to get an upfront fee of $2.42 Million BUT the announcement lacked detail on how this EAF dust was going to get to Tasmania. My guess is that $2.42 million will simply cover the freight and handling costs. I am cheesed off to think that this sort of detail was not included in the announcement.
Quite a while ago, probably early last year, I actually rang the Tassie EPA and they said that one of the conditions was that Intec would have to agree to remove any EAF dust from Tasmania if they were unable to treat it to their satisfaction. Basically the reasoning behind the Tassie EPA's position was that they don't want anyone else's crap dumped in their back yard.
We all know that 25 tonnes of EAF dust was shipped to Burnie to be used in the demonstration plant, and whilst all results so far are favourable, taking on 22,500 tonnes is an entirely different matter. The Hellyer project will need to be a goer to handle this sort of volume.
Harking back to my earlier comment on steady state performance, if Intec don't achieve this then Hellyer is not going to happen. So they can announce all the deals they like with EAF dust and it means squat until the other issues are addressed.
Make no mistake the ongoing supply of EAF dust, under the right sort of supply terms (which weren't detailed either) has the potential to be very valuable to the Hellyer project so it's kinda positive but let's not get ahead of ourselves to much yet.
Boomer
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