PERTH (miningweekly.com) – Capital costs for the Central Eyre iron project (CEIP), in South Australia, have been slashed by some $295-million, from $4-billion to $3.7-billion.
ASX-listed Iron Road told shareholders this week that the company’s partner China Railway Group Limited (CREC) had delivered the capital savings as part of the joint project commercialisation programme, with further savings expected from a final mine plan and schedule review.
CREC’s cost reductions were primarily driven by the Chinese company’s in-house procurement systems and leverage associated with key capital items and equipment required, Iron Road said.
The CEIP is expected to produce about 20-million tonnes a year over a mine life of at least 30 years, with CREC expected to take some 10-million tonnes a year of concentrate from the project, with the Chinese partner also having proposed an equity investment at both company and project levels.