Name and Location
West Pilbara iron-ore project (WPIOP), Australia.

Client
The WPIOP is being developed by the Australian Premium Iron Joint Venture (APIJV), a 50:50 joint venture between Aquila (Baosteel 85%, Aurizon 15%) and American Metals & Coal International (AMCI), which, in turn, is 51:49 owned by AMCI and POSCO.

Project Description
The project proposes the development of a substantial iron-ore export operation for the Pilbara region of Western Australia.

Stage 1 of the project is located on pisolite iron-ore deposits, between 30 km and 85 km south-west of Pannawonica.

The first stage of development will include the construction of a 40-million-tonne-a-year mining operation and a 282 km rail network connecting the mine with the Anketell Point port. The proposed port will host an initial capacity of about 100-million tons a year.

Iron-ore stockpiles, as well as processing, blending and shiploading facilities, will be constructed at the port location.

It is envisaged that multiple pisolite deposits, located on the western region of the Hamersley Ranges, will be mined simultaneously. There is potential for considerable growth in subsequent stages, based on the prospective and extensive tenement portfolio in west Pilbara, as well as tenements in east Pilbara.

Value
The JV partners of the WPIOP have reported a A$1.5-billion, or 25%, reduction in preliminary capital costs required for the development of the project in its results for the 2015 financial year.

Cost savings at the project have been identified as part of the current project assessment being undertaken by the JV partners and are achievable, given the expected subdued market for major capital activity.

“The company has confidence in the strength of the counterparties and the opportunity for further capex reduction,” Aurizon has said in its 2015 financial results.

The company has noted that an in-principle decision was 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 2012 study estimated that the Stage 1 operation would require a capital investment of A$5.7-billion.

Duration
Not stated.

Latest Developments
The Western Australian Environmental Protection Authority (EPA) has approved amendments to the WPIOP.

The project was granted environmental approval in November 2011, but the project changed hands in July 2014 after Baosteel and Aurizon had acquired Aquila Resources.

A revised implementation model for the project was subsequently developed, which separated the mine and rail developments into two projects.

The EPA has said that having reviewed the proposed changes to the project development, it will recommend that the Environment Minister accept the changes while maintaining the original environmental requirement conditions.

The West Pilbara project is currently in feasibility study stages. A final investment decision will be made in late 2016, with first exports targeted for 2017 or 2018.

Key Contracts and Suppliers
APIJV (definitive feasibility study).

On Budget and on Time?
Not stated.

Contact Details for Project Information
APIJV, tel +61 8 9423 0222, fax +61 8 9423 0233 or email project@apijv.com.
Aquila Resources, tel +61 8 9423 0111, fax +61 8 9423 0133 or email mail@aquilaresources.com.au.
AMCI, tel +203 625 9200 or fax +203 625 9231.
Baosteel, tel +86 21 2065 8888, fax +86 21 6840 4832 or email webmaster@baosteel.com.
Aurizon manager of external relations Mark Hairsine, tel +61 418 877 574.