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1,141 Posts.
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12/11/12
15:18
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Here’s a few reasons:
Superior grade;
Higher tonnage;
Lowest OPEX (STB won’t release their OPEX – what does that tell you);
Lower CAPEX per tonne once Infrastructure deals done;
Superior Infrastructure (water, roads, gas);
Closer to Port; (we will have our own port);
Closer to Brazil (World’s largest Potash importer);
Lower Sovereign risk and Supportive govt; (STB is effectively an Eritrean State owned Enterprise now);
Lower Corporate tax rate;
Higher % ownership; (ELM owns 93%, STB now only owns 50%)
Better continuity and consistency of potash seams between drill holes and across entire resource which allows for easier mining;
Greater exploration upside; (1436km2 total area but only 90km2 explored to date)
More accepted Mining method. (Conventional mining is preferred over open pit for Potash by Mining companies)
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