I've just had a read through this latest Triple C Research Report, I don't think these analysts know much about producing ferro alloys.
Its as I thought, expensive power
" Power costs USD $0.11/kwhr"
There is absolutely no way that GMC will be competitive in producing ferro alloys if the power cost is USD$0.11c.
OM Sarawak is US$0.04c, this means that for one tonnes of ferro manganese it will cost GMC US$385 for electricity alone. OM Sarawak it costs just US$140.
Until now India has been a big producer of ferro alloys and have now claimed that Malaysia is dumping cheap ferro alloys in India.
http://www.business-standard.com/ar...m-cheap-malaysian-imports-117022700569_1.html
BTW what ever happened to the Indian government investigation into cheap imports of Malaysian ferrosilicon. The Indian Ferro Alloys Producers' Assn asked the government's Steel Ministry to look into it. At the time of the request, February 2017, Indian power prices, according to the group, were about $20 per MWh lower.
Yes,the power price in India is more expensive than in Sarawak Malaysia. According to the above the price of power in India is $20 MWh more expensive, so add US$.02c to OMH Sarawak so its US$0.06c/KWh
BUT at GMC the power will cost US$0.11c /KWh
China it costs around US$0.08/KWH or US$319 of power to produce 1 tonne of ferro manganese.
When looking back over previous GMC posts to see if anybody else is concerned about the delivery and cost of power/electricity to the project I note that another HC poster The Mole has also queried the availability and the cost of power.
This is why OMH set up their ferro alloy plant in Sarawak, it was for no other reason but heaps of cheap power and they're tied into a 20 year power contract.
You need cheap power toproduce ferro alloys, and if you can't compete with Malaysia, India or China then what hope do you have selling in the world market.
