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BC Iron launches PFS on salt project

19th July 2017

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – A scoping study into the Mardie salt project, in the Pilbara, has found that the project could support a production rate of between 3-million and 3.5-million tonnes a year over a mine life of 20 years.

ASX-listed BC Iron on Wednesday told shareholders that the scoping study estimated a capital cost of between A$225-million and A$255-million, with operating costs estimated at between A$19/t and A$21/t free-on-board, while Mardie was expected to generate average revenues of around A$45/t.

The project would have a net present value of between A$290-million and A$380-million, depending on annual production, while the internal rate of return varied from 25% to 27%.

“The Mardie scoping study is another positive step towards realising BC Iron’s broader strategy of developing a diversified minerals portfolio. Importantly, the development plan for Mardie envisages using BC Iron’s proposed Cape Preston East port, strengthening its potential to become a multi-user, multi-commodity export facility,” said BC Iron MD Alwyn Vorster.

Based on the results of the scoping study, BC Iron will now undertake a prefeasibility study on the project, which will be completed by the end of 2017, after which the company will consider partnership options to fund and develop the Mardie project.

“Mardi’s economics appear robust at this early stage, and BC Iron aims to refine cost estimates and financial assumptions over the next few months as part of the prefeasibility study.

"In addition to the diversification into the potash industry, the Mardie salt project could further support BC Iron’s mission of maintaining a strong position in iron-ore, creating a presence in gold and base metals, and becoming a leading Australian player in the agricultural and industrial minerals industry.”

Edited by Creamer Media Reporter

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