PERTH (miningweekly.com) – An optimisation study into iron-ore developer Iron Road’s Central Eyre project, in South Australia, has resulted in lower operating costs, improved efficiencies and reduced delivery risks.
The optimisation study was undertaken in July, with the aim of increasing production from 21.5-million tonnes a year to 24-million tonnes a year.
A major component of the work undertaken was the detailed assessment of in-pit crushing and conveying, embedding the most efficient method of material movement over the life of the operation.
As a result, competitive operating costs have been delivered, supported by a weakening Australian dollar and lower diesel prices.
The study resulted in a reduction in the expected life-of-mine free-on-board (FOB) costs from the $44.33/t estimated in the 2013 definitive feasibility study (DFS), to $37.72/t, while total capital expenditure increased from the 2013 estimate of $3.98-billion to $4.01-billion.
“The optimisation work has achieved its aim of reducing delivery risk and operating cost estimates through detailed planning and improved flexibility, especially in the new mine design,” said Iron Road MD Andrew Stocks.
He noted that the mine optimisation work delivered superior outcomes to the earlier DFS by addressing, in detail, both the mine plan and a full suite of associated plant required over the life of the operation.
“We have continued to fine-tune the process plant layout and modularisation strategy and we are now updating our reserve estimates accordingly,” Stocks said.
“Importantly, the rail and port facilities will have sufficient capacity for an expansion of operations as well as third-party use and are particularly well placed to service grain producers.”
The Cape Hardy port was planned to have an initial capacity of 70-million tonnes a year, with the main export wharf capable of handling Panamax and Capesize vessels.
Stocks said that despite sector conditions remaining soft this year, the company continued to build the Central Eyre’s development case with potential steel mill customers, engineering partners and other potential project funding participants, currently undertaking due diligence.
Meanwhile, the environmental-impact statement and mining lease proposals for the project were also nearing readiness for submission to the state government, following extensive community engagement.