Hawsons prospects looking up
Tuesday, 24th February, 2015
Broken Hill isn’t the only city that stands to benefit directly from the Hawsons iron project going ahead.
A study has found construction of a 20 million tonne per annum export facility in Port Pirie is feasible, and would create over 80 direct jobs in the SA coastal city.
Carpentaria Exploration said the supply chain study also found that a near 20 per cent reduction in transport costs compared to previous estimates may be possible.
Completion of the study, which was jointly funded by Flinders Ports, was the “final plank” from which to launch a bankable feasibility study, managing director Quentin Hill said.
He said the big reduction in the transport cost assumption also potentially increased the company’s competitiveness and boosted prospects of development.
Carpentaria is proposing a 10 million tonne per annum iron operation 60km south west of Broken Hill. Concentrate would be piped to the export facility at Port Pirie before being shipped overseas.
A mining lease application has been lodged.
“Given that substantial premiums are being paid for high quality products, the project is highly attractive given current iron ore pricing dynamics and outlook,” Mr Hill said.
The company said it was now focussed on early stage discussions with other regarding funding options, product specifications, and infrastructure agreements.
Stewart Lammin, general manager of Flinders Ports, said: “We are pleased that the study has identified a feasible option for getting this material to port.
“Flinders Ports has viewed Port Pirie as a potential export option for iron ore, and this study demonstrates how our port could competitively move up to 20 million tonnes of bulk commodities per year.”