they may just do it., page-25

I have a read through OM holdings report, they are exporting 36% Mn grade ore to China with the cash cost close to $4/dtmu. They have open pit mine in Bootu Creek. I am still unclear of which port it transport ore to but could be as far as 800-1,000km to Darwin.

The $4/dtmu cost works out $192/tonne of 48%Mn grade in our case. Even if we truck the ore for 1800km all the way to Dar es Salaam, the transport cost would be $130/tonne. Plus mining/processing of $10-20/tonne and shipping cost to China for $20/tonne (Australian to China iron ore shipping costs $7/tonne). This leaves KAB with approx. more than $50/tonne profit for its 51% share. I believe my costing number is conservative and the rail cost is another interesting factor in this equation. In the past, Zambia rail cost is not competitive with trucking cost but it has changed the last year or so. I wish we could one day soon see the over $10/dtmu price for Mn ore but it is just a dream for now. Derisk this project with a first ore delivery then we are full steam ahead.