Never seen a setup like this before... two partners lined up for what sounds like the same stream of MREC? Got me curious. From what I can tell, most mines pick one downstream refiner per phase, esp once offtake kicks in. Keeps things aligned on specs, logistics, and tech flow. You don’t usually split that unless you’re hedging.Thanks @MargyAllSeasonsPR
Yeah this is great work by Management for Phase 2. @Fundamental posted this under Phase 2 discussions.
So now they have ReElement (USA based) and Toyota for Phase 2......it is interesting choice between the two. ReElement is more of a start up (with alot of work done and everything progressing)....whereas Toyota Tsusho Corporation is fully established (77 years) and major supplier to Toyota.
Pros and cons for each....
Good morning John, just a small correction, Pensana are not producing a concentrate, they are producing a processed carbonate, and are spending well over 100 million for this part of the process. this is why it is so attractive to RE Elementt, Tsushima Toyota and Solvay. it goes straight into there process for separation into oxides. and there are no radiation issues, certainly not in the exported commodity.Pensana could be very successful, but IMHO they need to lock in some critical parts of their project. Like binding off take (at least a significant %) and likewise with finance.
The reason I say this, is that they are not procesing to an oxide, only to a concentrate. So their customer market is limited somewhat to customers that are prepared/equiped to process to the oxide and the associated radiation disposal issues.
I say this, however, given they are proceeding construction without off take secured, the people who are financing the construction, but have great comfort that the off take becoming a binding contract is a formality. But as a retail investor, I would prefer to see those binding contracts.
Good morning John, just a small correction, Pensana are not producing a concentrate, they are producing a processed carbonate, and are spending well over 100 million for this part of the process. this is why it is so attractive to RE Elementt, Tsushima Toyota and Solvay. it goes straight into there process for separation into oxides. and there are no radiation issues, certainly not in the exported commodity.
Sorry - my point is, that most MREC contains radiation. And that will be removed by the processor (whoever that is).
So I can't see how Pensana MREC product can not have radiation. And if it is removed, where is it stored/disposed?
That is why Ore to Oxide projects are typically more capital intensive and cost more. So how is Pensana doing that for a relatively low capex?
It will be interesting to see if Pensana can move quickly into their Phase 2 - and become an ore to oxide business.
when the planning permission was sought for Saltend, this point was raised, and the response to the planning authority was "There will be no Radionuclides", the consequences of this not being true, would first of all, the raw material being rejected at point of entry, and secondly some very serious legal ramificationsSo it falls below the levels required for transport (Class 7)?
Sorry but I can't help you there; but after hearing today's report into the excessive costs now associated with over-regulation in all of Australian construction industries, I suspect it is a case of the US & Australia being overpriced compared to Africa.I'm still confused by this......be good to know exactly how they are doing this for so little money.
A lesson that Lynas failed to realise since day one. Aston's original BFS for Mt Weld identified this very issue, Rn's have to be dropped out and disposed of at the source. Shipping them to another Country or trying to bury them on the outskirts of Kalgoorlie was never going to be accepted. Now Lynas are being forced to transport their now concentrated rubbish 240km back up the road in specialised/dedicated trucks. It does not appear to have affected their SP though!when the planning permission was sought for Saltend, this point was raised, and the response to the planning authority was "There will be no Radionuclides", the consequences of this not being true, would first of all, the raw material being rejected at point of entry, and secondly some very serious legal ramifications