RE: RE: RE: RE: RE: RE: WPX / KRN Opex comparison You really need to go back to read KRN feasibility study report carefully. Tell me where it says their opex cost has sustaining capex included? Here are the numbers from their report:
Key Highlights of KRN FS and Technical Report:
- Development capital expenditure ("CAPEX") for the initial 625,000 tpy plant is estimated at with annual operating expenses ("OPEX") of per tonne KCl.
- Development for the full 2.125 million tpy operation is estimated at (inclusive of the initial ), with OPEX of per tonne KCl.
- Annual sustaining is forecast to begin in the fifth year of production and to ramp up to approximately annually in the ninthyear of production.
Estimated Annual (OPEX)
| Description |
625K Facility
($ millions)/yr |
Per Tonne KCl
($/tonne) |
2.125 M Facility
($ millions)/yr |
Per Tonne KCl
($/tonne) |
| Personnel |
6.84 |
10.95 |
16.22 |
7.63 |
| Natural Gas |
29.37 |
46.99 |
99.85 |
46.99 |
| Electricity |
9.70 |
15.53 |
32.99 |
15.53 |
| Brine Field Expansion |
20.70 |
33.12 |
70.38 |
33.12 |
| Maintenance & Spare Parts |
7.83 |
12.54 |
26.64 |
12.54 |
| Blanket Oil Replacement |
3.99 |
6.38 |
13.57 |
6.38 |
| Other |
4.61 |
7.36 |
14.90 |
7.01 |
| Total OPEX |
83.04 |
132.87 |
274.55 |
129.20 |
KRN's sustaining capex: $22million/yr.
I would assume their estimate is based on 625,000 ton production.
Sustaining capex/ton = 22.8/0.625 = $36.48/t
This number is close to WPX's sustaining capex of $46.48/t
KRN's CAPEX and OPEX cost estimate for the 625,000 tpy plant is at a ±15% while the estimate for the expansion to the 2.125 million tpy plant has been made with an accuracy of ±25%. The WPX's CAPEX and OPEX cost estimate accuracy based on 2.8million tpy is +15% to -10%, much better than KRN.
The above numbers are all from KRN feasibility study report. Go to visit:
https://www.karnalyte.com/News/news-details/2011/Karnalyte-receives-positive-Feasibility-Study--43-101-Technical-Report1126988/default.aspx