Pulacayo Project Feasibility Study - Apogee Silver

Pulacayo 1 000 t/d Phase I Feasibility Study - NI 43-101 Technical Report
090644-3-0000-20-IFI-100
in 2007 and 2008, up more than five-fold since the beginning of the decade. In a dramatic
retracement however, the market gave up all of these gains by the end of 2008 as the global
financial crisis took hold and only a marginal recovery has been witnessed since (see Figure
19.13).
These market movements translate into ocean freight rates for shipment of 10,000 ton parcels
from Chile/Peru to Japan/Korea/China reaching as high as USD 120 to 130 per ton at their peak,
with current rates being seen in the USD 50 to 60/wmt range. While a gradual rise in rates is
expected going forward as current levels are simply not sustainable, the return to the highs of
2007 to 2008 are not foreseen anytime soon.
Source: InvestmentTools.com
Figure 19.13: Baltic Dry Index: 2000 – 2012
Container shipments of concentrates typically present an expensive alternative to bulk shipments,
however for some movements they have become a competitive option and, in certain instances,
have in fact become a cheaper alternative. Rates to China in particular have come down to very
low levels as container lines look for backhaul opportunities to fill otherwise empty containers
returning to China. Additionally, reduced in-transit losses and the ability to ship more frequently
and in smaller lot sizes (as low as approximately 20 tons) thereby reducing working capital, can
further add to the value of shipping by this means.
SDV, part of the diversified transportation and logistics group Bolloré, and which focuses on
international ocean freight movements (including container and inland logistics management),
provided the following indicative rates for the movement of concentrates in containers from Uyuni
to delivery China via Antofagasta, Chile:
TWP Sudamérica S.A. Av. Encalada 1257 Of. 801, Santiago de Surco Lima 33, Perú (51-1) 4377473
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