FMG - Fortescue Ltd

[Miner]

Hi tb

I don't get what you mean about the triple roadtrain. Why do they have to do this?

Regards
Duckman

Dear Duckman

Road trains are basically trailer truck used for material conveying.
Normal trucks carry one trailer body with one prime mover. Then comes double road train where one driver's cabin is attached with two trains (if you can take the similarity with passenger railway trains with one or two cars). Now extend it to triple road trains . THis is nothing new however and very common in minesite. What it means that higher level of productivity and each driver will carry 3x 20 tons of ore body.

I hope that was your question !

 

[Duckman#72]

Dear Duckman

Road trains are basically trailer truck used for material conveying.
Normal trucks carry one trailer body with one prime mover. Then comes double road train where one driver's cabin is attached with two trains (if you can take the similarity with passenger railway trains with one or two cars). Now extend it to triple road trains . THis is nothing new however and very common in minesite. What it means that higher level of productivity and each driver will carry 3x 20 tons of ore body.

I hope that was your question !

Hi Miner

Thanks, but I should have been more specific.

My question relates to road trains v rail. Why are FMG using road trains at all? No so much "what is a road train?" but "why are FMG using them to travel a 540km round trip?"

Cheers
Duckman

 

[Miner]

Hi Miner

Thanks, but I should have been more specific.

My question relates to road trains v rail. Why are FMG using road trains at all? No so much "what is a road train?" but "why are FMG using them to travel a 540km round trip?"

Cheers
Duckman

Duckman

I believe FMG intends to use road trains as a plan B to catch up with any delay in railway tracks.

Put it in this way : one normal wagon train will have any where between 30 to 56 cars . Rio Tinto (180 mtpa ? from Pilbara) / BHPB (135 mtpa ?) uses massive train length for a very high tonnage. Their haulage capacity is very high compared to FMG probably generate some where @35 MTPA (not 45 or 55 mtpa) for the first four months until Sept 08 when ramping up will happen with lump circuit commissioning and second instalment of desanding plant.

If rail hypothetically gets delayed by one month. FMG need to put its feet to show business as usual. So they need to have a contracted fleet about 15 triple road trains for a month to carry 4500 tons per day for a small distance of 540 (?) KM. Not a big deal for a snart operator who has billions at stake and going to get every ton from his mine will fetch more dollars (considering the low production cost without any primary crushing circuit from an advanced gardening).

Down side is some extra dollars on operating cost for FMG.

Upside is Andrew will prove his worth and credibility, shut up his critics and opponents like Ian Ashby or Sam Walsh. It will be real interesting scene in Australian Mining History from the grand son of ex Premier of WA.

Regards

 

[waz]

Just looking at the above calculations, are we saying 300t per truck??

4500 divided by 15, i dont think that is even possible, I did a quick search on google and the heaviest load ever moved on road is 500t, that was over a short distance on a freeway spread over many wheels.

Also, how would you load and unload the trucks?

In other news, why is FMG going up today, its the only short I have right now, and its also the only stock I have thats in the green. Just my luck.

 

[treefrog]

The road train pictured, used to transport zinc-

lead concentrate from MIM's McArthur River mine

near Boroloola to the mine's export port at Bing Bong on the

eastern gulf coast of the Northern Territory is the largest

registered road train in Australia.

The road train is designed to haul 150 tonnes of concentrate, is

160 m long and takes nerves of steel to overtake!

 

[tigerboi]

It looks like a few of the guys have already explained it to you, as for the N.T. triple side tippers my understanding is in w.a. you can go on a concession permit to 147t gross,with a tare of 46t to give you a 100t per triple,i dont work up there as i run eastern states b/double,but i dont think the rta in w.a. would let you cart 150t net,im assuming with the road train side tippers photo you meant 150t gross not net,i will stand corrected from any of the guys over there on the 150t subject,as they only let MMX run at 147t gross,tare 47t, = 100t net load,its a big job to run that amount all the way from the mine to the port,dont forget the trucks & trailers after awhile fall apart from the state of the roads...as for overtaking road trains people its always best to have a 2 way/cb in your car in the road train areas,usually on channel 40. All you have to do is call up the guy in the roadtrain:"copy in the triple roadtrain,iam on your rear in the car(little one),ah can you let me know when the coast is clear & i can come around you?yep no problems mate the driver will say to you"all the drivers are only too willing to keep things safe,its only when you get the odd few numbskulls that want to be foolish around the big ones..they are too impatient,in a hurry to get themselves killed...Alot of numnut car drivers cant understand what the"Do not overtake turning vehicle" sign means... like this guy!!...tb

 

[tigerboi]

Hi Miner

Thanks, but I should have been more specific.

My question relates to road trains v rail. Why are FMG using road trains at all? No so much "what is a road train?" but "why are FMG using them to travel a 540km round trip?"

Cheers
Duckman

My understanding is the mine is about 260-270 kms from port(see map in tolhurst research) so thats roughly a 540km round trip,as for 15 roadtrains it will have to be 30 to shift that amount of fe,you wont get a permit to go to port as MMX is only allowed 147t gross for 100t per trip,so work it out how much needs to go by road? 1mt at 100t a truck,10,000 trips required,maximum per driver a day is 2,did someone say 1mt in a month?333 trips a day,nope not in a month,too many drivers & trucks required...sorry it seems its 4500t a day,45 trips a day,trucks do 3 trips but drivers only allowed to do 2 as per work/drivehours,can be done sure but the best for the 4500t scenario is to go a little bit more as you will get many break downs,i would go 20 roadtrains & 40 drivers in a shuttle opreation...This is why i got out at $50 as i understood from my transport experience the rail would not be on time,if you want to see a heap of number crunching on the hole FMG set up,go on their website to brokers reports,here:http://www.fmgl.com.au/IRM/Company/ShowPage.aspx?CPID=1322&PageName=BBY Research

Here is the best,it even tells you how many flies are on twiggys back when he lobs at cloud break!...
http://www.fmgl.com.au/IRM/Company/ShowPage.aspx?CPID=1398&PageName=Tolhurst Research

cheers....tb

 

[Go Nuke]

I think todays Doji will indicate a change in direction tomorrow, assuming the U.S doesn't have an absoltue shocker tonight.

Still trading within my trend channel

 

[Frankhalo]

Personally I couldn't give a rats if they were using Tonka trucks and child labour to load the ships, ( actually child labour is wrong, just making a point ) as long as they meet the May 15th quote I will be a happy investor. Regardless if its a day, week or month out BIG DEAL,you only have to see how far FMG have come to know this isnt some Junior start up Co, this is the full monty, third biggest IO play in Australia at a bargain price ATM.

 

[tigerboi]

Personally I couldn't give a rats if they were using Tonka trucks and child labour to load the ships, ( actually child labour is wrong, just making a point ) as long as they meet the May 15th quote I will be a happy investor. Regardless if its a day, week or month out BIG DEAL,you only have to see how far FMG have come to know this isnt some Junior start up Co, this is the full monty, third biggest IO play in Australia at a bargain price ATM.

Ah tonka trucks that takes me back to my ankle biter days when i dreamed of being a truck driver,lets hope the FMG tonka drivers keep them shiny side up...

 

[robjb5]

Luv your work,TB!! Ok Tedi? About mid to late '80's?-----Photograph rouses the memory banks!!!!!!!!!!!!!!!

 

[agro]

China bans BHP, Rio
Updated: 08:53, Tuesday March 18, 2008
China has boycotted Australia's two biggest mining companies from selling iron-ore in the lucrative market; the move may have already cost around $300 million in export revenue.

It comes as both BHP and Rio Tinto attempt to increase prices in a bid to extract more value from the country's powerful steel industry.

Mining analysts say neither company has been able to send a single spot shipment into China since the start of the year.

It's understood no other companies have been blacklisted, with shipments still flowing from Australia's OneSteel, India and Iran.

The China Steel Association says there has been no official directive from the government, instead the steel companies were acting on their own accord.

The conflict threatens to escalate into a diplomatic row, and both BHP and Rio are urging Prime Minister Kevin Rudd to intervene when he visits Beijing next month.

 

[tigerboi]

Luv your work,TB!! Ok Tedi? About mid to late '80's?-----Photograph rouses the memory banks!!!!!!!!!!!!!!!

yeah thanks mate,thats a fair dinkum photo too & it wasnt me who put it over either,got a few more drivers in the album who thought it good to test the laws of gravity!

this one is for all the guys who run containers out of botany or any where else... ALWAYS get out of the cab until the straddle/crane puts the container on...

 

[tigerboi]

Talking about the subject of FMG using roadtrains to get the fe to the ship,i rings up ol' mate the twigster,"i says i here you are having trouble finding the required trucks to shift that amount","he says its true but keep it dark,no probs twiggy,he said at the moment we will take anything & i will be on the shovel"...im leaving sydney now see you at cloud break!!!

 

[Go Nuke]

China bans BHP, Rio
Updated: 08:53, Tuesday March 18, 2008
China has boycotted Australia's two biggest mining companies from selling iron-ore in the lucrative market; the move may have already cost around $300 million in export revenue.

It comes as both BHP and Rio Tinto attempt to increase prices in a bid to extract more value from the country's powerful steel industry.

Mining analysts say neither company has been able to send a single spot shipment into China since the start of the year.

It's understood no other companies have been blacklisted, with shipments still flowing from Australia's OneSteel, India and Iran.

The China Steel Association says there has been no official directive from the government, instead the steel companies were acting on their own accord.

The conflict threatens to escalate into a diplomatic row, and both BHP and Rio are urging Prime Minister Kevin Rudd to intervene when he visits Beijing next month.

I saw this story this morning on the business channel before I left for work and thought it would help FMG's share price today, but for some reason FMG has been pretty much pounded for the day

It should add more fuel to the rumour of the Chinese buying up more Iron Ore companies with good prospects here like they are trying to do with Midwest.

Perhaps CFE or BRM or may other hopefuls will get a knock on the door by a chinaman

 

[Prospector]

Agro beat you to it first thing this morning! All resources got pounded today, so I think FMG was just part of the downturn for this sector. Maybe it scared people into thinking if China bans BHP then the same thing could happen to FMG. The market hates uncertainty.

 

[Frankhalo]

Tigerboi stop posting pictures of trucks doing bad things, your driving FMG's price down

Yep till BHP + RIO lock away IO increase prices with China FMG may take a back seat for a little while. Take 50% - 65% this year instead of the 71% increase and ask for more next year when the worlds markets settle I say.

 

[tigerboi]

Tigerboi stop posting pictures of trucks doing bad things, your driving FMG's price down

Yep till BHP + RIO lock away IO increase prices with China FMG may take a back seat for a little while. Take 50% - 65% this year instead of the 71% increase and ask for more next year when the worlds markets settle I say.

keep ya daks on mate,market sentiment is that FMG wont make the may deadline & ive already told you that was the reason i sold,my twucks sending FMG spiralling downwards???lol...thanks for the rap mate ill keep in mind for TOLL,now take a deep breath & relax,i will find you a pic of the concrete mixer going into cloud break(i suppose joe will say no more pics tigerboi,the FMG crowd are nervous??)its a legitimate subject of FMG'S use of road instead of rail to get the job done,huge costs are associated with this type of transport & that is evident by FMG loking to sell 50% of their railway(great asset.they should lease it out imo)to claw back some of the $800,000+ it cost to build,FMG will get their up surge once the have foos...tb

twiggy in his cement truck....lol!!

 

[tigerboi]

keep ya daks on mate,market sentiment is that FMG wont make the may deadline & ive already told you that was the reason i sold,my twucks sending FMG spiralling downwards???lol...thanks for the rap mate ill keep in mind for TOLL,now take a deep breath & relax,i will find you a pic of the concrete mixer going into cloud break(i suppose joe will say no more pics tigerboi,the FMG crowd are nervous??)its a legitimate subject of FMG'S use of road instead of rail to get the job done,huge costs are associated with this type of transport & that is evident by FMG loking to sell 50% of their railway(great asset.they should lease it out imo)to claw back some of the $800,000+ it cost to build,FMG will get their up surge once the have foos...tb

twiggy in his cement truck....lol!!

interesting to see how much of their other tenements,when they start drilling,how much they will get out of mt stuart jv with CUL,also when they will start the upgrade on the rail to handle the 55mtpa when it comes out of the mines,when they do put it all together it will be the monster of all monsters,at present they have 2bt+ on only 10% of their ground...tb

 

[tigerboi]

interesting to see how much of their other tenements,when they start drilling,how much they will get out of mt stuart jv with CUL,also when they will start the upgrade on the rail to handle the 55mtpa when it comes out of the mines,when they do put it all together it will be the monster of all monsters,at present they have 2bt+ on only 10% of their ground...tb

I think the biggest problem that FMG faces at the moment aside from the foos deadline is the charges asic have brought against twiggy concerning the supposedly agreements with the chinese steel mills,this brings unwelcome media attention at a time when the company needs total focus on the first shipment,some investors could view this in a bad light,however as i said once it all comes together for FMG its just a colosus juggernaut ready to sneak in between bhp & rio on the fe tonnages to export,good story about to fall into place notwithstanding un forseen disasters...tb