GREY:CPMNF - Post by User
Comment by
greenandgoldon Sep 14, 2011 2:53pm
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Post# 19042094
RE: RE: Railway
RE: RE: Railway5km per km of rail may be low! Consolidated Thompson's 33 km Bloom Lake railway spur ended up costing $177.5 million (according to CLM's last annual report), that's $5.4 million per km. Management tend to underestimate capex. Labor, equipment, and materials costs have sky-rocketed in recent years, especially in relatively remote areas like the Lab Trough.
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Every iron ore company with infrastructure issues trots out the slurry pipeline option, but few ever build them. If it cost $500 million to build a pipeline a few years ago, expect it to realistically cost $1 billion now. Add to this permitting and technical issues (will the slurry freeze in the fierce Northern winter?) and it seems an unlikely option.