Economic Advantages
- The present Australian coal and iron ore seaborne export system has the steel mills making 5 to 7 major ore freight and handlings from Australia's east or west coast mine sites to their domestic or overseas iron making operations. The EW rail system will involve only 2-3 major freight and handlings for only one major ore resource, directly reducing present bulk handling and transport costs significantly. The EW rail system will be fully utilised with full loads in both directions, whilst currently the massive bulk ships and the trains have empty trip returns to Australia for re-loading.
- EW Line parks require significant transporting of only one resource commodity. Either iron ore or coal will be carried on long distance rail line, which will be located at a terminus park/precinct designated sites where the other commodity resides. In addition to the economies of prime payloads in both directions, the rail provides for cost effective transportation of waste for deposit into empty mine sites.
- Further transport advantages and cost effective means of opening new markets arise because ships can be up to three times smaller, with three times less sea distances on some routes compared to the present raw material bulk carriers. This opens up direct access routes via the Suez and Panama Canals to East coast USA & EEC - Mediterranean markets. Such ships can then support normal back freight shipping loadings with freight cost efficiencies. The project opens up new global market access opportunities and marketing delivery strategies not currently available!
- Major savings in the construction and operation of smelters occur by locating six or more blast furnace units in close proximity in each precinct. By sharing plant and equipment, services and infrastructures, significant savings associated with reduced production, energy and operations costs occur. Precinct Operational Shared Cost Economics! Environmental outcomes emulate these efficiencies.
Capital, Operational Expenditures and Environmental Savings
-
Substantial capital and operational savings will occur in expenditures and environmental savings, to mutual shared long-term sustainable advantage.
-
Key PIB economic concept and strategy attributes offer unique project first-stage global steel industry combined competitive advantages!
-
Supply chain consolidations of coking and thermal coals + iron ore and natural gas/coal-seam-methane gases, indicating around 30% savings.
-
Pre-fabrication and modular construction of blast furnace units. 5 100-200 mt bolt-together modules offer $300m unit savings per blast furnace.
-
Standardisation of blast furnaces with flexibility for internal operations and quality adjustments will offer at least $400m unit savings per blast furnace.
-
Blending beneficiations of magnetite and hematite ores for long-term blast furnace internal operational economics, with expected internal OPEX savings of $122m per blast furnace pa.
-
Precinct economics for OPEX and CAPEX shared services have the potential of saving hundreds of millions!
-
Carbon credits generated on new for old replacements and from the above features will be an additional positive attribute that has not yet been quantified!