MarlboroD,

You said: "My guess is that a private pipeline with a public road might be a solution. The advantage for KWG is that it gives them an essential monopoly situation on the chromite. Who is going to set up a competing mine and truck their ore out via the public resource road when KWG is sending it out via private pipeline at a substantially lower cost."

There are a few items in your post above, some comments below:

- Private pipeline: Agreed, this has always been the assumption. The cost of the pipeline would be ~$500M, give and take, and it could be (easily) financed by a deep pocket who is friendly with KWG as part of the KWG chromite mine plan (along with the Gas Super Converter at the other end, Nakina end). The pipeline was not suggested as part of the RR/service road package to be financed by the "public" (i.e. with government fundings, etc). However, it would save quite a bit of money if key players get together to have a master plan so that construction of various elements could be co-ordinated (e.g. heavy construction equipment could be shared). If required (in the case the RR and the private road are delayed due to bickering among the parties, then the slurry pipeline could proceed independently.

- RR and small service road: Fees would be collected (by a Port Authority) from users (the FNs are expected to be exempted). The service roads are to provide mainly access to isolated communities in the north (more convenient than the train, people still like to drive their own cars). However, the RR is rquired for bulk tonnage operation. Supplies, equipment and chromite ore that is qualified as DSO, which is an option for direct sale to others. There will be enough chromite ore to go around, in addition to what is provided to the Gas Super Converter for value-added products.

Bottom line: Slurry pipe, RR and small service road are all required for the development of the RoF. Each would serve its own purpose, and the existence of one would preclude the development of the other two. If all parties agreed with a master plan, then they could be developed at about the same time to save money. But, if this is not possible then each can proceed independently. At least, the pipe can be de-coupled from the other two which should be developed at the same time since they belong to the "public infrastructure" (Wynne, Harper and the FNs should put heads together to sort out a common strategy).

goldhunter