Hi Marshhawk,
Yes, it is fascinating. Maybe some of the Murrin Murrin plant (Anaconda) will end up like the Hiroshima bomb - a design that was used once only. But, the Hiroshima bomb design work lead to other, better (not quite the right word in this context), uranium bombs. There has been talk of the re-design of some of the Murrin Murrin plant.
Your comments about the haste in which the project was apparently conceived and executed are, I think, on the mark. However, perhaps Anaconda think that the first group to get a major PAL plant working efficiently will be well positioned to expand their position (take overs, JVs).
My worry about the high through-put rate, coupled with the extreme conditions, is that corrosion and abrasion often work in a synergistic fashion. Things might be OK at a certain through-put, but double that through-put and the life-time of the equipment is reduced by perhaps a factor of 10. I understand that equipment corrosion is a major cost in PAL plants, so corrosion rates will be critical.
Regarding the scenario of letting Anaconda fall over, and picking up the pieces cheaply. I am sure Anglo (and others) considered this. But Anglo probably decided that they could not be sure of getting control - other majors are starting to sniff around. And there will probably be advantages in getting a major plant working in time to take advantage of any collapses in the African and Russian producers. |
