It will be interesting to see what the ramifications are.I believe the tariffs existed to protect local supply. The removal of tarriffs apply to all nutrients so it can’t just be a reflection of excess capacity following a ramping up at Lop Nur and the desire to flood the SOP market.
Clearly those with the lowest production costs will be relatively safe. With respect to the various Aussie studies I assume everyone is using the same data from Cru, their outlook may change and the guys using US$550-600/T might have to revise their spreadsheets.
The local situation is interesting with both KLL and APC looking at supplying the domestic market. APC are undertaking studies to look at
the advantages of SOP v MOP in the WA wheatbelt.
RWD needs to do all it can to drive down costs.
I also think it needs to do more to distinguish itself from the others because I don’t think the grade and potential big resource is helping now that analysts can just crunch the financial models (some of which are based on some dodgy assumptions). Without substantial bore data the resource below the top 6M is almost irrelevant and the conservation approach used thus far by RWD, along with its proposed harvesting fails to demonstrate the value of high grade when making simple comparisons with peers.
