Iron mine closer
Thursday, 22nd March, 2012
By Paula Doran
Carpentaria Exploration is one step closer to developing its multi-billion dollar iron ore project having just signed a memorandum of understanding with Flinders Ports for exports.
The company announced the signing yesterday and Carpentaria executive chairman, Nick Sheard, said it would hasten the development of the Hawson’s iron project and improve its feasibility.
What the MOU means is that any iron ore extracted from the mine, south of Broken Hill, will be shipped to Port Pirie via rail and then exported.
“A large export facility at Port Pirie, serviced by the existing rail line, allows export opportunities at start-up as well as providing options for increased tonnages,” said Mr Sheard.
“Not having access to an existing port is a major impediment that other potential iron producers are facing in Australia.
“This certainly puts Hawson’s ahead of the pack,” he said.
Hawson’s Iron Project has an estimated 1.4 billion tonne resource - the largest in NSW and one of the largest in the nation.
The MOU allows for the establishment of a common user facility at Port Pirie capable of exporting large tonnages of iron ore via a barge-style operation.
And by having export and shipping immediately available, it means the company can ramp up production more quickly than forecast.
Carpentaria expects the deal will have benefits for Broken Hill and Pt Pirie through the use of rail, giving limited impact on communities through reliance on truck transport.
The signing has also been welcomed in Pt Pirie where Flinders Ports’ CEO Vincent Tremaine said the agreement represented a great opportunity to expand the role of the region and to consolidate its future as a major export centre.
“Carpentaria’s projects have the potential to generate significant iron ore exports and we are determined to ensure this wealth benefits the local region,” Mr Tremaine said.