atma,
i think mak will wait to see what size resource they are likely to have before they decide what tonnage they will ultimately target per annum and the method of transport. they will also want to make sure that the phosphate price remains strong before investing too heavily in transportation infrastructure.
initially i would imagine they would truck it but rail or conveyor are also options if the points raised in the above paragraph support the investment.
below is a small read which is interesting info and includes some cost comparisons.
The CARIAT Conveyor - a breakthrough in bulk solids transportation
Transportation of bulk materials (iron ore, coal, woodchip, grain) is almost exclusively the domain of road and rail. While each method has its pros and cons, the disadvantages are evident. Increased fuel costs, damage to sensitive environments, interference with local traffic in major centres and tourist routes, port congestion and disturbances to non-indigenous and indigenous communities are hurting mining and resource companies and the community at large.
DeVere Mining Technologies has, for over five years, been developing a hybrid of rail and conveyor able to convey bulk materials over distances from 0.5 km to over 500 km. The CARIAT (Continuous Articulated Rail In a Tube) Conveyor System is designed to carry materials made up of particle sizes less than 80 mm. This relates particularly to iron ore, coal, woodchip, mineral sands, and grain.
The CARIAT can travel overland, underground and, for short distances, over water. The technology – aimed at the mining and mineral resource sectors - is designed to dramatically reduce costs associated with the transportation of bulk materials, while avoiding the prime problems associated with road and rail (cost, oil dependency, safety, environment).
Electrically powered, the CARIAT will in some instances have the capacity to generate energy back into the grid – in effect, partially recycling its own energy.
Why the CARIAT will become the new mining industry standard
Presently, mineral-bearing ore is transported from mine to port via rail, road and conveyor, or a combination of all three. Each has its advantages and disadvantages:
Rail tends to be used on long haul – over more than about 200 km – but at a high capital cost.
Road transport tends to be used where the terrain is difficult and over relatively short distances using existing roads – from 5 to 200 km – at a lower capital cost, but a higher operating cost.
Conveyors are used over short distances – less than 20 km – and where environmental issues prevent the use of wheeled vehicles – at operating costs that are less than trucks and rail, but with high capital cost.
The CARIAT system can operate at a combined capital and operating cost of around 20% - 40% of conventional belt conveyors and railways, and around 10% to 25% of the cost of trucking, yielding savings of 60% to 90% over traditional transportation systems.
DeVere Mining Technologies has carried out a comparative costing of the CARIAT technology with rail and road:
Project costs of the CARIAT versus other bulk materials handling systems
Bulk Transport System Cost Per Tonne Kilometre (AU cents)
Trucking
4.0 - 18.0
Rail or Conveyors
2.0 - 4.0
CARIAT system
0.1 - 2.0
Sea Shipping
0.1 - 0.4
2005 Case Study – New, long distance Pilbara Iron Ore Railway
This study illustrates the savings potential of the CARIAT system in a Pilbara Iron Ore Mining project involving the transportation of 70 million tonnes per annum over a distance of 500 kilometres.
Comparator Rail CARIAT Savings
CAPEX
A$1,200 M
A$300 M
A$900 M
Cost to Port
A$6.50 /t
A $1.50/t
A $5.00/t
The CARIAT is Pro-Environment
The CARIAT has enormous environmental advantages over existing modes of transport:
Low Noise, Low Environmental Impact – Capable of traveling underground safely, eliminating noise, dust and other impacts in environmentally sensitive areas, with reduction of impact on wildlife and flora, including areas affected by jarrah die back.
Minimized impact on existing communities due to its slim, streamlined size (less than 500kg per linear metre compared to 13 tonnes per linear metre for trains)* and ability to travel underground, resulting in reduced visibility and noise.
*variable
The CARIAT is Versatile
Will free up arterial and domestic routes by reducing the number of trucks on the road, and will reduce rail congestion, particularly with transportation of ore and coal to port.
Access to ports - As it is able to curve, travel underground and traverse areas susceptible to flooding (eg large parts of the Northern Territory), the CARIAT will be able to access ports and/or intermodal freight hubs with relative ease and minimal visibility and disturbance to existing rail and road facilities.
Reduced footprint in port stockpiles.
The CARIAT can be customized to handle specific freight such as iron ore, coal or woodchip, preventing cross contamination of materials.
While its scale, compared to rail, is diminutive, the CARIAT’s mode of continuous operation, day and night, enables it to match the overall quantity carried by schedule-limited rail over a similar period.
Current Status
A life-size demonstrator section is available for inspection south of Perth, and 3-D CAD design drawings for all key components are in place. The University of Newcastle Research Associates (TUNRA) Limited has pledged its initial support in assisting us in the development of the technology. With adequate investment, DeVere anticipates premiering the first completely operational CARIAT by the end of 2007.
cheers
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