Ann: Presentation - Arlington Pre-daba, page-21

Dr F,

"I dont get it are they going to build a new sea port  ? what is the total distance of transportation from finished product in the MSP to the sea port ?

Yes. 55km maximum. They will build their own road, which will be a few dollars, but they built a 8km road for Kwale.

"ilmenite is a low cost product and transportation costs are high in madagascar (due to high fuel prices)"
I dispute it being low cost, but fuel prices are comparative to Australia. Wages are very low comparative to Australia.

"if they get 225 US$/t price of ilmenite sold yet it costs to produce a tonne some 150 US$/t and then to transport it some 100 US$/t i just dont get where are the margins.
"Total opex costs will sit around the $US120/t mark for the entire product suite.
Remember, it's a 10:1 product suite (Ilmenite / Zircon-Rutile), so every 10th tonne you are going to get $1,250 for it. Also, that video has indicated they may introduce a solar panel energy system, it will be a few bucks upfront, but could well keep opex costs down.


Essa,

"The main uncertainty at this stage is the amount of dredging required"
It's 15 metres deep and wont need to be dredged. They will use a Handymax 60,000t vessel. Fairly standard for sand.


Dr F, Long Tony,

Average per tonne
You have three pricing variables always moving around so I wouldn't read too much into this.
Other factors to be noted, is the high range cut off of 3% and with a simple flowsheet, they would be able to get much of that, so that alone could change your output number, thus effecting your rev/cost.

You will also find they will mine the high grade areas first, and many of those are 10% with a cut-off at 3% and without any of the intermediate or lower sand being included.

P