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Gold/Mining/Energy : Exall Resources/Glimmer Resources
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To: winzer5 who wrote (1267)12/6/2004 9:35:24 AM
From: E. Charters  Read Replies (2) of 1319
 
Honestly?

It is the wrong side of the world for Asian demand, but I suppose it has iron. Fairly rich iron. More or less direct shippable, provided it has low phosphorous. I am not sure they can separate the hematite from the magnetite that easily. It needs study.

It is a promotion. Ordinarily in North America you have trouble shipping iron at a profit if it is not just about direct shipping. Spend any money at all in the plant and you are toast when competing with the Australians, Brazilians and Argentinians. They can always undercut. These days, if the prices stays high it might make a difference. Iron even for the low cost producers has always been touch and go. Lots of competition, and uncertain price structure from year to year. I worked a plant where they had a sponge iron (Fe and FeO) reduction works that used hematite pellet feed. The Fe2O3 pellet was in turn made from Fe3O4. It never paid to run it as the price of Fe fell and scrap out competed it. Kiss 175 million in 1969 dollars good-bye. Stelco did that. If they couldn't see it coming, then there is lots a lot of people cannot see coming.

But the Helen mine in Wawa ran as and underground operation for years. The world's only underground iron mine. Its secret was that it had high grade < 50% Fe carbonate ore. This is smelter "sweet." It was captive of Algoma, and was profit making in and of itself.

Iron is a good idea when the prices are high. It needs big capital. St Mary's will need 300 million I would guess.

EC<:-}
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