Re: Cliffs: Opportunity For New Direction towards Real Market Diversification
posted on
Aug 11, 2014 12:08AM
Black Horse deposit has an Inferred Resource Now 85.9 Million Tonnes @ 34.5%
I base my opinion of a likely cost range for a pipeline on estimates given for a slurry pipeline through mountainous country in British Columbia. Mind you, these are 2008 figures, and for coal slurry. These figures are for 3million tons per year, and for distances between 250kilometres & 555kilometres, depending on route.
Pipeline to Hazelton Pipeline Pipeline Pipeline & Rail to to to to Prince Prince Item Scenario: Stewart Stewart Rupert Rupert ------------------------------------------------------------------------- Route Distance 254 km 254 km 320 km 555 km ------------------------------------------------------------------------- Pipeline Capacity 1.5 Mtpa 3 Mtpa 3 Mtpa 3 Mtpa ------------------------------------------------------------------------- Capital Cost Estimate (millions of 2007 dollars) ------------------------------------------------------------------------- Pipeline 154 199 219 303 ------------------------------------------------------------------------- Service Road 50 50 28 50 ------------------------------------------------------------------------- Briquette Plant, Water Treatment & Land 25 30 30 35 ------------------------------------------------------------------------- Rail Loadout 0 0 10 0 ------------------------------------------------------------------------- Stewart Port Improvements 16 29 0 0 ------------------------------------------------------------------------- Total Capital Costs 245 308 287 388
Costs will be higher, simply because it is now 2014, 6 years inflation added, but also because
coal is less abrasive than chromite, so different lining technology will be needed.
Their costs were estimated at around $250 million for just a pipeline & service road over a 320k distance
Here is their site
http://www.newswire.ca/en/story/266049/fortune-minerals-announces-slurry-pipeline-transport-study-results-for-mount-klappan-coal-project