Chromite ores have a long history of low pricing and for Australia's only chromite mine this has been a particularly tough challenge, especially as the mine is located nearly 400 km from the nearest port at Port Hedland. A stockpile of chromite fines (-16 mm) has been built up since 2003. The opportunity to develop a facility to treat this material to produce a chip (-16 + 1 mm) product and a sands (-1 mm + 45 micron) product was taken when the price increased to above US$140/t. A simple add-on plant containing a heavy media cyclone circuit for the chips and a spiral circuit for the sands was designed and developed._x000D_
During construction of the fines plant the price of chromite reached a level where the payback for the entire project was less than eight weeks. Soon afterwards the price and the demand for chromite plummeted and the site was put on care and maintenance, except for the commissioning of the fines plant. This put considerable pressure on whether to continue to operate the plant or to place it in care and maintenance._x000D_
Times of boom and bust provide management with almost totally opposite views._x000D_
By not taking a conservative view on prices and costs, the effect of extremely low prices and minimal demand can be devastating to a good project. Designing and building plants with conservative costings in boom times gives a greater chance of keeping projects alive during the bust periods that tend to follow.