Re: 5 BOLD PLAYS (Union Gas White Paper)

HIGH-GRADE NI-CU-PT-PD-ZN-CR-AU-V-TI DISCOVERIES IN THE "RING OF FIRE"

NI 43-101 Update (September 2012): 11.1 Mt @ 1.68% Ni, 0.87% Cu, 0.89 gpt Pt and 3.09 gpt Pd and 0.18 gpt Au (Proven & Probable Reserves) / 8.9 Mt @ 1.10% Ni, 1.14% Cu, 1.16 gpt Pt and 3.49 gpt Pd and 0.30 gpt Au (Inferred Resource)

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goldhunter11

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Re: 5 BOLD PLAYS (Union Gas White Paper)

in response to

5 BOLD PLAYS

mmss

posted on Nov 01, 2014 06:01PM

mmss,

Interesting catch. CNG/LNG for the RoF starts at page 47 (near the end). Not sure if this and the event Frank talking with Enbridge are related.

It would be interesting to do some math to find out the subsidy that the Ontario gov was willing to give Cliffs and compare that to the cost of building a gas plant, or gas pipe line to power/feed the RoF and smelter (KWG gas-powered smelter).

According to Cliffs Black Thor project description, some 300MW would be required for the electric arc furnace.

Math (kindlu check): 300MW = 300,000kW x 24hrs x 365 days/year = 2.6B kWh/year

For every $0.01/kWh subsidy: $0.01 x 2.6B = $26M/year

So, for $0.04/kWh subsidy the Province would need to fork out ~$100M/yr. For 10 yrs it would be $1B...Shocking isn't it. Assuming that my math is correct.

Now, what's the cost of building some gas pipeline for direct use in the KWG gas-powered smelter, or buiding a gas plant to feed power to high-power consumption items?

Queen's Park should get at least one young engineer who can do calculations with a $1 calculator for these comparisons. There is no need to use computer for this stuff.