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A new frac spread costs $20 million, commissioning a previously idled spread costs about $2 million in capex. No plans to add new capacity. Nabors Industries (Land drilling contractor) 15% of US customers outside of Alaska have indicated plans for a light reduction in rig counts in the second half of 2017, one third plan to add rigs.
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HPAL plants have moderate to high operating costs of around US$450/lb, and high capital intensities around US$30/lb of annual capacity At the upper end of capital costs, the Ambatovy plant has a capital intensity of almost US$50/lb of annual nickel capacity High capex is a barrier to entry, only making very large projects economic. Live Chat
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