Name and Location
Nelson Bay River iron project, Tasmania.

Client
Shree Minerals.

Project Description
A prefeasibility study (PFS) on the Nelson Bay River iron project has confirmed the viability of the project to become an iron-ore producer, in north-west Tasmania.

The project has three types of resources – direct shipping iron (DSO), beneficiable low-grade resource (BFO) and magnetite resource.

Shree plans to mine the DSO first, followed by BFO material and the magnetite material.

The DSO has a strike length of about 500 m and requires no beneficiation or processing beyond crushing and screening. The BFO has a strike length of about 600 m at the northern end of the deposit. The BFO operation is a transition between the DSO operation and the magnetite production stage.

The BFO is fed by a –3 mm size ore stream, which is upgraded by low-intensity magnetic separation (LIMS).

The LIMS will later be used in the coarse cobbing stage for the main magnetite processing plant.

Value
Capital expenditure has been estimated at $4.5-million for the DSO phase and about $2-million for the BFO phase, with subsequent magnetite phases funded from internal accruals.

Duration
Not stated.

Latest Developments
Federal Environment Minister Mark Butler has again approved the development of the Nelson Bay River iron-ore project, in Tasmania.

The Minister has imposed 30 conditions on the approval, after considering the impact the project’s development will have on the environment.

These conditions include a range of avoidance and mitigation measures that will reduce the likely impacts. Where significant residual impacts remain likely, however, the company must take other action to compensate for the impacts, known as offsets.

Butler’s decision precedes a similar decision by previous Environmental Minister Tony Burke in December last year. Burke’s approval was subjected to a judicial review, after the Tarkine National Coalition appealed the decision.

The Federal Court of Australia set aside Burke’s decision to approve the project earlier this month, prompting Butler to reconsider the matter.

Shree has welcomed Butler’s decision. It states that the project will assist the region with improved social equity and quality of life.

State government approvals for the project have already been received, including a mining lease, a development permit and environmental approval.

There was an appeal against the state planning and environmental permit, but this was dismissed by the Tasmanian Resource Management and Planning Appeal Tribunal.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Shree Minerals, tel +61 8 6161 2068, fax +61 8 9385 5194 or email info@shreeminerals.com.