PERTH (miningweekly.com) – Junior developer Carpentaria Exploration on Monday flagged a near 20% reduction in the estimated supply chain costs for its proposed Hawsons iron project, in New South Wales.

The company announced the successful completion of a supply chain prefeasibility study (PFS) for the Hawsons project, which increased confidence in the project’s economic and technical delivery by bringing the supply chain solution from the conceptual to the prefeasibility stage.

Carpentaria said that the study allowed for a reduction in supply chain cost assumptions from  $16/t estimated in April 2013, to $13/t. The study also demonstrated that the proposed 20-million-tonne-a-year export facility at South Australia’s Port Pirie was feasible.

The Port Pirie iron-ore export facility PFS investigated rail, unloading, product storage, transfer to existing berths, barge loading and delivery of Cape-size vessels.

The study estimated that works at the port would cost some A$230-million to complete, and Flinders Ports had suggested that the costs could be reduced materially with further study and value engineering.

“The results are hugely significant for the Hawsons project. The study’s successful completion provides the final plank from which to launch a bankable feasibility study,” said MD Quentin Hill.

He added that the $3/t reduction in transport cost assumptions also potentially increased the competitiveness of the project, and boosted the prospects for development.

“Our studies will now target an all-in free-on-board cost range of between $39/t and $47/t for a 69.5% iron concentrate product based on current exchange rates. Given that substantial premiums are being paid for high-quality products, the project is highly attractive given current iron-ore pricing dynamics and outlook.”

Hill added that the company would also continue to consult with the local and state governments regarding its plans, and as the project progressed, would increase its community engagement.

Carpentaria secured port access for up to 12-million tonnes a year at Port Pirie in July last year, with Flinders ports and the Hawsons developers agreeing to jointly fund the rail-port-marine study for exporting between 10-million and 12-million tonnes of ore a year by Cape-size vessels through Port Pirie.