The RIO costs will mean Newcrest will have to give Telfer away plus a bond towards the closing fees. Telfer is basically worthless. From a GGP perspective closing Telfer can be done over a longer duration. Periods when production is shutdown for breakdown or other issues staff can be reassigned to Telfer reinstatement. I am guessing that GGP can charge a common fund set up to fund the reinstatement of Telfer. Another poster mentioned ASIC for companies like Newcrest, Newmount being higher. This is true as these companies have higher operating costs. It is why they need projects with larger ROI. Newcrest, Newmount can borrow larger amounts and at lower interest rates than the likes of GGP. They can afford to buy the larger mines with a greater ROI. The aquifer needs to be resolved. Costing time and money.
I have not got a clue what Shaun is like. I know 100% what Banks are like. They will not hand over money if they think they will never get it back. They will want answers. AS for an issue aprt from me. We have stopped digging the decline. Is that not an issue?
I would like to know how the water pressure is dropping and what estimates they have for it reaching level where they can continue digging. I do know they will not be able to raise money from the banks for buying Telfer and the other 70% of Havieron. As they are stuck at the aquifer the Banks will want a detailed analysis of what the issue is before they hand over their cash.
I am very reluctant to call anyone a liar. At certain times people have to chose their words carefully. If he came out bouncing with statements like the water pressure is falling rapidly and we hope to restart the decline in a few weeks. Is the water pressure falling? Very little information about the actual state of the aquifer.
Your estimates and others have been proven over optimistic. Until the aquifer is resolved all talk about the decline is guess work. Estimates for digging again have been based on digging 3km of tunnel but over 2.1km of decline. No real idea what is happening at the face. Estimating with the lack of information we have and no real idea of the conditions is conjecture. I hope the aquifer issue is fixed and we are digging the decline.
Shaun controlled language around the aquifer was a red flag. I am sure they will get through, not sure when.
His timeline is not right it is a guess, an estimate. So far all estimates with respect to mining have been highly optimistic. We do not know if the aquifer is in a state that the decline can continue. We have been given no real indication how large this aquifer is. The largest aquifer in the world is the Great Artesian Basin in Australia. Reaching the ore body this year cannot be predicted until the aquifer is sorted. Stating 6m a day is making up numbers.
Its a big cost. It is a cost that will get bigger, with greater environmental concerns and inflation. Telfers high ASIC value which means lower revenue to produce a profit and revenue for rehabilitation. No buyer being able to put a final figure on the cost of rehabilitation, this is a risk. The local authorities will want guarantees that who ever runs Telfer has the resources to close the mine. Newmont may have to put a bond down. Newmont may close Telfer, I do not think the local authorities will be happy. It may have a negative affect on future mining in the region. I think it is a buyers market.
The big guys have big overheads. They want big mines with big resources. That needs lots of money. Havieron may not give Newmont the ROI they want. Wyloo see Havieron differently. It explains why Wyloo are on board.
The only thing I can see that Newmount have in the Pilbara region of any value is Havieron. Unless I am missing something.
Does anyone else supply ore to Telfer? The gold mined at Telfer is just about economical. Why would anyone buy it knowing they would have to pay closing down fees?