PERTH (miningweekly.com) – Infrastructure developer BBI Group has struck a deal with the subsidiary of Mineral Resources, for an option to acquire the Weelumurra iron-ore project, in Western Australia.
The project is some 15 km from BBI’s proposed Central Pilbara rail head and stock yard, and had the potential to be the foundation iron-ore asset for the planned Balla Balla infrastructure project.
The Balla Balla project is a multibillion-dollar development that will link iron-ore deposits with a new iron-ore export facility at the Balla Balla port, through a 162-km purpose built railway.
BBI CEO Nicholas Curtis said this week that the company was continuing to develop the Balla Balla infrastructure project as the next tier-one, low cost, large scale iron-ore export infrastructure facility in the Pilbara.
“Securing the Weelamurra iron-ore asset is an important step in BBI’s efforts to progress the project to a final investment decision. We look forward to working with Mineral Resources and other Weelumurra stakeholders to continue its development so that we are in a position to bring it into production via the Balla Balla infrastructure project.”
Curtis said that in parallel with securing the Weelamurra iron-ore asset, BBI also completed an exploration review of the iron-ore potential of the ground covered by its Central Pilbara Hay Stack Flat tenement applications, which are located adjacent to the proposed railway line.
The review determined its geological characteristics have the potential for iron mineralisation of up to 400-million tonnes, and BBI is now progressing the application and planning of an exploration campaign.
Furthermore, the company has also progressed confidential discussions with the owners of other potential customer miners seeking export capacity through the infrastructure project.