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Big plans for chairman

Saturday, 27th February, 2021

Outgoing Managing director Quentin Hill gave a tour of Broken Hill and the Hawsons Iron Project site to Carpentaria Resources new Executive chairman Bryan Granzien this week. PICTURE: Myles Burt Outgoing Managing director Quentin Hill gave a tour of Broken Hill and the Hawsons Iron Project site to Carpentaria Resources new Executive chairman Bryan Granzien this week. PICTURE: Myles Burt

By Myles Burt

Carpentaria Resources have appointed a new Executive Chairman who is determined to get the ball rolling again on the Hawsons Iron Project. Bryan Granzien became the new Executive Chairman, in December last year, after a board spill campaign saw him elected into the position. Mr Granzien said the board spill was led by the previous chairman in part with a large Chinese investor in the company that tried on four occasions to overthrow the board. 

Mr Granzien said he was approached by one of the board directors in particular to help with a counter-campaign to deal with the board spill. 

“There was an executive general meeting, the shareholders voted, we won that vote so that chairman was gone and we’ve stabilised the board,” Mr Granzien said.

“That’s part of the reason it’s taken some time to get this project off the ground, Quentin’s done a great job with his team in dealing with all that over a long period of time.

“But we’re now in a good space to be able to take the project forward.”

As a result of the board spill, Mr Granzien said the Chinese representative of that investor has resigned from the Board and the Chinese investors who owned roughly around 28 per cent of the company are in liquidation.

“There is an opportunity for those shares to end up in the hands of let’s say more supportive shareholders,” Mr Granzien said.

Touring Broken Hill and the Hawsons Iron Project with outgoing Managing director Quentin Hill, Mr Granzien said they have started their bankable feasibility study and are campaigning to raise $34.9 million required to put them in a position to take them to the banks. 

To then allow them to raise a further $1.4 billion required to build the mine. 

Mr Granzien said he likes to think construction of the mine will occur in 2022 and be in production by 2024. Mr Granzien said with iron ore still in high demand and prices at record levels such as over US $200 a tonne.

“There is no better time to raise the capital when there’s this bullish market that we’re in, which is expected to go for some time,” Mr Granzien said.

“Who knows prices can always trick us right, but it’s looking good.”

Mr Granzien said the Hawsons Iron Project is in good shape with one of the biggest job opportunities will be around the construction of the mine. 

Mr Granzien believes there to be around 1,250 jobs available in construction alone, with around 500 jobs available when the mine is operational. 

Mr Granzien said with the Board stabilised and shareholders engaged his only mission going forward is raising capital for the bankable feasibility study.

“That’s the key milestone, there’s no other key milestone right now because that releases all the other activities on the project,” Mr Granzien said.

Outgoing Managing director Quentin Hill who on Friday will be finishing up with Carpentaria Resources, said it’s been a fantastic 12 year journey working on the Hawsons Iron Project. 

Mr Hill was a part of the discovery team for the Hawsons Iron Project in 2009 and was supervising the drill rig on the discovery hole.

“I was MD for seven years, I’m pretty proud of where we’ve got it to a technical and commercial platform right now to be exploited and lifted to the next level,” Mr Hill said.

“Times are good and the price of iron is high.”

Mr Hill expects the iron ore prices to stay strong for quite some time as whilst Chinese steel production was forecast to peak, it hasn’t and its production has grown continuously over the last four years as steel production is a major economic driver for China. 

Mr Hill said the project having the highest iron content in the world will also be ready to meet new industry trends of sourcing high quality iron ore to produce greener low-emission steel.

“It’s got the highest quality ore which means you can make the greenest steel from it, which will underpin its demand and its value,” Mr Hill said.

“The project’s future I think is right.”

Mr Hill leaving now as a supportive shareholder, believes the company is in good hands with Mr Granzien and has been working very closely with him to best pass on the project in a seamless transition. 

Mr Granzien said he would like to thank Broken Hill and local shareholders for their support over the project and that they’ll be continuing their support for the community in future.

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