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Fixed cost provisions in infrastructure contracts, otherwise known as 'take-or-pay', result in most miners in Australia paying for capacity regardless of tonnes actually shipped. In 2013, we estimate a weighted average transport and port charge of A$20/tonne for exporting mines. Of this, we estimate miners will pay an average take-or-pay 'penalty' for underutilisation of capacity of approximately A$4/tonne. This translates to 21% of total transport and port costs, but only 5% of total cash...
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Australia: The pain of take-or-pay PDF - 429.71 KB 5 Pages, 0 Tables, 6 Figures
The pain of take or pay.xls XLS - 155.00 KB
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Insight | Jun 2013
Australia: The pain of take-or-pay
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