RE: Concessions21 Nov 2021 15:10
@ jam2morrow If you look at Page 202 of the same document, you will see the operating costs include $3,210,000 a year for sulfuric acid during Stage 1, and $4,420,000 annually if it were to reach the production level of Stage 2. But of course, it would be difficult to get past Stage 1 without adequate water supply or electricity, neither of which are available at the moment.
The revenue projections include profits from a side hustle of selling potassium sulfate, a popular fertilizer. Difficult to produce a sulfate without sulfuric acid, would you not admit? You will find references to Glauber’s salt, throughout the process flow charts. That’s the common term for sodium sulfate. The sulfate comes from .... well, you know.
As for water, here is what was reported:
“A Radial Collector Well (RCW) system of three (3) wells are located 7 km north of the plant site, will pump raw water to the raw water tank in the process plant. The raw water is then distributed throughout the process plant and to the mining and administration departments. The RCW is located in an alluvial corridor associated with Rio Bacadehuachi. The RCW system can provide the water requirements for Stage 1 of the project for normal conditions. The uncertainty remains in surface flows through the dry season and sustained droughts to meet any increase in demands for the project.”
But the bigger BCN fantasy is that there will be enough fossil fuel to operate the mining and processing. The scheme is to run a natural-gas pipeline 150 miles (!) from the US border. The gas will be used for roasting the clay to 900 degrees C, and to produce electricity for all other operations. They found a supplier of the natural gas (which has increased in price by about 60% since the estimates were made) that will pay for the pipeline and recover the cost by charging more for the CNG (at the time, estimated at $8,820,000 annually for Stage 1, and twice that for Stage 2).
Back in the 19th Century, the U.S. built its western railroads with imported Chinese labor. Maybe Ganfeng can speed up the construction of this pipeline, with new immigration to Mexico. Forced Uigur labor, perhaps. Will the steel for the pipe come from Brazil?
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