Name and Location
Giffen Well iron-ore project, Australia.

Client
WPG Resources.

Project Description
A prefeasibility study completed on the Giffen Well project, in South Australia, has proven the project to be economically viable, with a 30-year mine life.
The base-case scenario for the project includes:
• the construction of an openpit iron-ore mine and magnetite concentrator at Giffen Well;
• an openpit coal mine and power station at Penrhyn that will supply low-cost energy to the iron-ore operation, local services and infrastructure;
• a rail spur line that will connect to the Central Australian line near the Carnes siding; and
• the construction of rail receival, storage and outloading facilities on the company’s land at Port Pirie.

The project will produce five-million tons a year of high-grade 68% iron magnetite concentrate, with low levels of impurities and 400 000 t/y of low-cost hematite concentrate recovered from scavenging the magnetite tailings.

The magnetite deposit will be mined at a rate of 13-million tons a year.

The Penrhyn coal deposit will be mined at the rate of 480 000 t/y of coal, which will be washed and fed to a small 90 MW power station that will provide energy to the iron-ore project and all associated infrastructure.

Value
The estimated initial capital cost for the development of the integrated project is A$1.58-billion including of contingencies.

Duration
Production is expected to start in 2017.

Latest Developments
WPG is assessing funding alternatives for the project after receiving expressions of interest from institutions for the provision of off-balance-sheet power solutions.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
WPG Resources, tel +61 2 9251 1044, fax +61 2 9247 3434 or email info@wpgresources.com.au.