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Flinders lowers capital cost for Pilbara project

Flinders lowers capital cost for Pilbara project

Photo by Bloomberg

18th September 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Iron-ore hopeful Flinders Mines has lowered the development cost for its flagship Pilbara iron-ore project, in Western Australia.

A 2011 prefeasibility study estimated that the project would require A$488-million in capital to support a Stage 1 development of five-million tonnes a year.

A further capital investment of A$641-million would be required to increase production up to 15-million tonnes a year.

However, Flinders reported on Thursday that an independent investigation into the project had revealed that capital expenditure of only A$726-million would be required to support a 25-million-tonne-a-year operation.

The new capital estimate included A$384-million for processing plant and infrastructure, a further A$177-million for site infrastructure, A$131-million for construction costs and A$34-million for mine site works, pre-strip, road and tailings.

Flinders was expected to refine the cost estimate for the Pilbara iron-ore project during the bankable feasibility study, which was currently under way. The study would investigate a build-own-operate scenario to remove large capital items from the balance sheet.

Edited by Creamer Media Reporter

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