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...
Table of contents
Introduction to 'take-or-pay'
Infrastructure costs and utilisation in 2013
Outlook: Higher utilisation, falling penalties
Companies most impacted by take-or-pay
Tables and charts
This report includes 6 images and tables including:
Transport and port charges by mine, 2013
Port utilisation curve by mine, 2013
Share of production at 80% utilisation by year
Take-or-pay penalty charge (real 2013 terms)
Infrastructure take-or-pay charges by company, 2013