As I understand with Glencore its more complex than the energy prices at Mt Isa smelter, they also have a copper refinery in Townsville which usually are extremely energy intensive. Power costs on the coast are are high (competing with exports) which jeopardize the entire Cu operation.
IPL can relocate their ammonia plants (as nat gas is a major input) but they will need to produce phosphoric acid close to the source.It seems like IPL have signed a 10 year contract on this basis that they plan to stick around
I would tend to agree that liquid sulphuric acid is a logistics game, but around the Mt Isa/Far North Qld is not a bad place to be as the cost of importing liquid sulphuric acid would be very high and there could be long term natural homes for the acid.
AML Price at posting:
31.0¢ Sentiment: Buy Disclosure: Held
(20min delay)
