PERTH (miningweekly.com) – Iron-ore developer Iron Road has undertaken an optimisation study on its flagship Central Eyre project, in South Australia, with the aim of increasing production from 21.5-million tonnes a year to 24-million tonnes a year.
A previously conducted definitive feasibility study (DFS) on the Central Eyre project confirmed that it could deliver about 21.5-million tonnes a year of concentrate, over a 25-year mine life, generating revenues of about $2.8-billion a year. Nearly 50-million tonnes of export capacity had been identified at the proposed Port at Cape Hardy for potential third-party users.
MD Andrew Stocks said on Wednesday that subject to securing approvals and finance, Iron Road expected to start construction on Central Eyre in 2015, with exports to start by 2018.
Meanwhile, the company had also established a data room to facilitate a detailed project review by potential participants.
Stocks said that the company had already conducted a range of informal discussions across the North Asian region, and it was now time to formalise this interest.
“Following detailed face-to-face overviews, we will be admitting eligible parties to the data room to facilitate more comprehensive and in-depth commercial-in-confidence discussions. The next stage will ideally see progression towards defining a memorandum of understanding for the project development.”
Stocks pointed out that the project development bar had been raised significantly in recent times, given the cost over-runs and problematic ramp-ups of banded-iron-formation projects. Stocks warned that both the market and potential finance partners would treat development cost forecasts with a degree of caution.
“Iron Road as a company has taken a diligent and rigorous approach to our DFS, and we look forward to our technical work and operating cost model being examined rigorously during the due diligence period, particularly around our processing flow sheet.”