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Cyprus' cabinet approves a preliminary deal with Noble Energy (NBL), Delek Drilling (DGRLY.PK,...

Cyprus' cabinet approves a preliminary deal with Noble Energy (NBL), Delek Drilling (DGRLY.PK, DK) and Avner Oil Exploration (AVOGF.PK) to develop a ~$10B liquefied natural gas terminal on the island, the government says without providing details. Cyprus aims to begin LNG exports in 2020 and to process not only its own gas but also supplies from Israel and possibly Lebanon. (earlier)
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  • Failure to proceed with Bloom Lake Expansion seems to be that the price paid for the property, and a cash cost $60 to $85 makes the property uneconomic with final product selling at $90 to $130. Property was negotiated during the Chinese price balloon and appeared chancy at that intoxicating time.

     

    Now product is tethered at a modest price of $130 or less and costs are rising, and markets restrained. Lake District operators would often effectively hedge their product sales by long-term contracts with domestic mills. Most mills are beholden to the few owners, USS and Arcelor Mittal providing their needs from owned properties with plans for expansion.

     

    Ten year contract with Essar-Algoma, one of the uncommitted mills in the Lakes is encouraging, but also points to a limited future for North American producers of iron ores.

     

    19 Jun 2013, 06:19 PM Reply Like
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