expect diesel shortages in WAIntrepid relies on diesel for power at Paulsens, which is better than being shut down due to lack of gas. However, they are likely to see rising costs as they compete for diesel fuel with others.
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HUNDREDS of millions of dollars in revenue could be wiped from the balance sheets of mining companies affected by the shutdown of Apache Energy's Varanus Island gas processing plant in Western Australia.
Many of the miners have been forced to switch to diesel, a much more expensive and strictly short-term solution.
DJ Carmichael head of research Paul Adams said the companies most affected would be Minara Resources, BHP Billiton, Rio Tinto, Iluka, Oxiana, Newcrest, Burrup Holdings, Alumina, Alcoa, Santos, Origin Energy, Tap Oil, Jabiru Metals and Newmont Mining.
Dow Jones reported yesterday that Alcoa, which obtained a quarter of its energy supplies from Apache, would have already been hit to the tune of at least $10 million in increased costs while it sought alternative energy supplies.
Supplies of diesel in industrial quantities were likely to run short very quickly, Mr Adams said.
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https://www.news.com.au/heraldsun/story/0,21985,23817299-664,00.html