where art thou cliff?, page-12

You'll find some background on the JDC demo plat here:

http://www.jdcphosphate.com/

"demonstration plant designed to produce 12000 ton per year of phosphoric acid and 70000 tons per year of aggregate. "

Minemakers is focused on the production of high-value SPA at Wonarah utilising IHP technology.
Minemakers owns 3.3% of JDCP and has the exclusive right to utilise IHP in Australia.
In summary, IHP entails:
? Mining
? Beneficiation to 15-20% P2
O5
? Grinding with raw petroleum coke and silica
? Pelletisation
? Roasting in a ported rotary kiln
? Delivery of a phosphorus rich gas
? Hydration process
? Superphosphoric acid production at a contained ±70% P2
O5 – a very high nutrient product
? Co-product is a low environmental impact and usable inert spent pellets (see below)
The process produces inert pellets as a co-product, which JDCP has named J-ROX. Whilst J-ROX
has demonstrated suitability as an aggregate in many applications, Wonarah’s distance from major
metropolitan centres indicates the likelihood of this co-product having real commercial value

MAK is ready to go with limited downside:
* MC ~$30 mil about the same as cash in the bank.
* IHP process will let MAK develop Wonarah in a staged manner, for $200 mil year 1 and $125 mil year 2, will see MAK in production at Wonarah.

The thing nbno says about Wonarah needing the IHP process to be a success is quite true. However the pilot plant (smaller plant before this new demo plant) has proven the process and Wonarah material has been run through the pilot plant and show to process successfully. If it all goes to hell in a handbag then we still have cash backing close to MC. My expectation of probability of success of the IHP is something like 98% (it would have to be something in the process that can't handle the scaling up, but if you read up on the process it is pretty simple, no complex chemistry or processing, so I think it highly unlike that it could fail at scale)