PERTH (miningweekly.com) – The joint venture (JV) partners over the West Pilbara iron-ore project had identified a A$1.5-billion, or 25%, reduction in preliminary capital costs required for the development of the project.
A 2012 study estimated that the Stage 1 operation would require a capital investment of A$5.7-billion.
The first stage of the West Pilbara project would involve the development of a new deep-water port at Anketell and a 280 km railway to support at least a 40-million-tonne-a-year throughput, from eight mining areas.
In an announcement of its results for the 2015 financial year on Monday, infrastructure provider Aurizon said the cost savings at the West Pilbara project had been identified as part of the current project assessment being undertaken by the JV partners and was achievable, given the anticipated subdued market for major capital activity.
“The company has confidence in the strength of the counterparties and the opportunity for further capex reduction,” Aurizon said in its report.
The company noted that an in-principle decision has been taken that further project governance measures be implemented to allow for a whole-of-project oversight and programme management, including the holding of assessment-stage gates.
A final investment decision on the West Pilbara project would be made in late 2016.
The West Pilbara project is jointly owned by Aurizon, Korean major Posco, American Metals & Coal International and Baosteel Resources.