Insight
Australia: The pain of take-or-pay
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*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
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
- Executive summary
- 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 the following images and tables:
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Transport and port charges by mine, 2013Port utilisation curve by mine, 2013Share of production at 80% utilisation by year
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Take-or-pay penalty charge (real 2013 terms)Infrastructure take-or-pay charges by company, 2013Assigned port capacity utilisation by company (%)
What's included
This report contains:
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