Oakajee port and rail project in doubt
- Thread starter redwing
- Start date
Personally doubt we'll ever see OPR
1. If you believe in mean-reversion of iron ore prices, the OPR is going to have difficulty ever getting up given the ridiculous capex required to fund all the mines such as Karara, Jack Hills etc in the region which are the primary users of the infrastructure. The high opex required to beneficiate the ore makes these projects so untenable in the first place.
2. Mitsubishi has been rumoured to be re-considering for a long time. They'll probably pull out before you know it.
3. Murchison Metals is a what, $300m company? Someone explain to me who's going to give them the $3.0bn they need to fund their 50% of the Jack Hills mine and OPR development? Details from the BFS this week should make that apparent.. I doubt JBIC are going to arrange funding given Mitsubishi is already rumoured to be pretty unhappy. SinoSteel (a major shareholder in Murchison)? Doubt it again if they're not doing their own 100%-owned project? POSCO (the other major shareholder)? Again, doubtful, given how far away Jack Hills is from Stage 2.
4. The other main customer, Gindalbie (partnered with AnSteel), has had blowouts after blowouts in capex. At this rate who knows if AnSteel will pull out? Their Govt's SOE - Sinosteel - pulling out wouldn't give them much confidence you'd think.
1. If you believe in mean-reversion of iron ore prices, the OPR is going to have difficulty ever getting up given the ridiculous capex required to fund all the mines such as Karara, Jack Hills etc in the region which are the primary users of the infrastructure. The high opex required to beneficiate the ore makes these projects so untenable in the first place.
2. Mitsubishi has been rumoured to be re-considering for a long time. They'll probably pull out before you know it.
3. Murchison Metals is a what, $300m company? Someone explain to me who's going to give them the $3.0bn they need to fund their 50% of the Jack Hills mine and OPR development? Details from the BFS this week should make that apparent.. I doubt JBIC are going to arrange funding given Mitsubishi is already rumoured to be pretty unhappy. SinoSteel (a major shareholder in Murchison)? Doubt it again if they're not doing their own 100%-owned project? POSCO (the other major shareholder)? Again, doubtful, given how far away Jack Hills is from Stage 2.
4. The other main customer, Gindalbie (partnered with AnSteel), has had blowouts after blowouts in capex. At this rate who knows if AnSteel will pull out? Their Govt's SOE - Sinosteel - pulling out wouldn't give them much confidence you'd think.
Want more what?
The main point is OPR is blowing out of proportions... and who's funding MML's $3.0bn capex?
If OPR is looking difficult, why would anyone bother developing their mine in Midwest...?
The main point is OPR is blowing out of proportions... and who's funding MML's $3.0bn capex?
If OPR is looking difficult, why would anyone bother developing their mine in Midwest...?
James price point just signed off yesterday.....
Protesters can protest all they want. Deal is signed, no one is listening anymore.
Hope Mitsubishi pulls out of OPR altogether... about time some conceited people get hit with job losses. Love to see all thoes mining jobs in that region (don't worry there's plenty, happy to post a map if needed) capitulate.
What a strange and incredibly ignorant thing to say. My life sucks so everyone else should feel pain sort of statement.
I keep hearing 'when the mining boom hits' through these posts, but in all reality it has hit, it is just not felt as a boom because of the weakness in other sectors. Make no mistake the mining boom is proping the entire economy. If that makes us conceited well deal with it.
BTW the money is there to be made by anyone, including you Delta. Oh but maybe it is easier to trash the industry than actually do the time onsite. Theres a reason we get paid well.
Media is always listening and itching for a fight; right or wrong, as controversy sells papers
I heard the vote was 60/40 ?
who cares, iron ore is a relatively plentiful commodity, the main reason for the increase in iron ore price is not due to underlying supply, but rather the relationship between getting that supply out of the ground and the rate of growth current demand.
In essense its a timing issue.
The Chinese are not stupid, they have to balance this fact against the benefit of certainty of supply.
In essense its a timing issue.
The Chinese are not stupid, they have to balance this fact against the benefit of certainty of supply.
yeah i heard it was 60/40 because stupid landcorp want the land seceded from the traditional owners - you know,create a title, sell the title, collect stamp duty, apply for tenement under title, more fees, royalties from tenement, get the traditional owners body involved and paid etc etc.
if they'd have just approached the traditional owners and asked for a 499 year lease (with obvious significant lease values attached) with a contractural promise to maintain/restore the land when finished, the land would have been lent in a comparitive flash.
hel, there could have even been state legislation passed to that effect.
the issue isn't the development. the issue is giving the land up. regardless of whether they get a say or not in whatever happens, the land is now gone.
it's only a wedjela thing to have a cry about the gas hub on a beach.
Haha... does your life suck? Sorry to hear that.
Not sure what is so strange. If you keep taking the Chinese and Japanese for granted, you won't be paid well soon.
Yea well having 30% Fe grade iron ore that requires $$$bn to beneficiate and 000's km away from a port that doesn't exist wouldn't exactly help.
