Name and Location
Central Eyre iron project (CEIP), Australia.

Client
Iron Road.

Project Description
The definitive feasibility study (DFS) on the CEIP, located on the Eyre peninsula, in South Australia, has confirmed the project’s viability to deliver high-grade and low-impurity iron-ore concentrate, providing a competitive and clean blending solution for the Asian market.

The DFS modelling is based on a 25-year mine life, comprising an initial 17 years using proven and probable reserves of 2.071-million tonnes at 15.5% iron and an additional eight years using measured, indicated and inferred resources of 1.303-million tonnes at 15% iron.

The base case development model envisages a 21.5-million-tonne-a-year operation, following a staged ramp-up of more than two-and-a-half years.

The base case and production growth model assumes initial base case production to the end of the fifth year of operations, when production is increased to 24-million tonnes a year from additional resources and continues at that rate until year 28. This scenario is based on future production being sourced from inferred resources and the conversion of a portion of the significant exploration target to mineral resources.

Ore treatment by conventional crushing, milling and magnetic/gravity separation is planned to deliver high-grade concentrates containing 67% iron at a relatively coarse size distribution greater than –130 μm (80% passing; P80).

Value
Capital costs for the CEIP plant, facilities and infrastructure have been calculated at $3.98-billion, including a 9.4% contingency.

Duration
Iron Road is expected to start construction during 2015, with first production expected by 2018.

Latest Developments
The federal government has granted major project facilitation (MPF) status to Iron Road’s Central Eyre project.

The project was granted MPF status after Iron Road had demonstrated that the project met the eligibility criteria, and was of strategic significance to Australia, which included economic growth, exports, employment and infrastructure development.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Iron Road MD Andrew Stocks, tel +61 8 9200 6020 or email astocks@ironroadlimited.com.au.