Name of the Project
Central Eyre iron project (CEIP).

Location
Australia.

Client
Iron Road.

Project Description
A Class 3 mine optimisation programme has validated, improved and further derisked the 2014 definitive feasibility study findings on the CEIP.

Iron Road has been focused on advancing the CEIP, which includes a proposed long-life mine and processing plant, as well as regionally supportive rail and port infrastructure.

The mine has been designed for in-pit crushing and conveying, with fully mobile and semimobile crushers, as the characteristics and size of the orebody are ideally suited to this mining method.

Mobile in-pit crushers will be connected to the main pit conveying system through smaller dedicated fully mobile conveyors. Each component is relocatable using transport crawlers, allowing for components to be easily moved during pit advance.

The optimisation programme proposes the construction of a modularised ore-processing facility on the south-east perimeter of the proposed pit.

The facility has three discreet processing trains to provide a high level of plant availability and minimise operational downtime.

The processing trains will incorporate seven main modules – a semiautogenous grinding mill, a rougher magnetic separator, a gravity beneficiation circuit, a regrind mill, a ball mill, a cleaner magnetic separator and a tailings filter building.

The facility will process up to 175-million tonnes (dry) a year of feed material at an overall average head grade of about 16% iron, producing 21.5-million tonnes a year of iron concentrate (dry basis) at an estimated 67% iron.

Dewatered coarse tailings from each process train will be discharged onto the tailings transfer conveyor. The filtered moist fine tailings will be transferred to the waste rock conveyor originating from the mine. The combined tailings and waste rock will be stacked on the integrated waste landform by a mobile spreader. This method minimises water use and reduces the waste storage footprint.

Iron concentrate will be transported from the mine site by a standard-gauge, heavy-haul rail system along the infrastructure corridor to a new port facility at Cape Hardy, when the bulk commodities port facilities are located 7 km south-west of Port Neill. The port is planned to have an initial capacity of 70-million tonnes, with the main export wharf capable of handling Panamax and Capesize vessels. Two shipping berths for bulk iron-ore carriers will be serviced by a slewing, luffing and travelling shiploader.

Jobs to be Created
The CEIP will employ about 1 950 people during construction and 700 during operations, all located on the Eyre Peninsula, in addition to the workforce required in the Adelaide head office. 

Net Present Value/Internal Rate of Return
A geared, post-tax net present value, at a 10% discount rate, of $1.4-billion and and internal rate of return of 15% is the minimum
targeted outcome for the  project commercialization phase.

Value
Iron Road lowered the project’s capital expenditure by $600-million to $3.4-billion in April 2016.

Duration
Not stated.

Latest Developments
The Premier of South Australia has  granted two of the key approvals required for the CEIP.

The CEIP has generated significant momentum towards financing and construction, with the rail and port components declared a priority project by Infrastructure Australia in September 2016, and three major Chinese banks in April 2017 formally indicating lending appetite for the CEIP’s requisite debt financing. Progress has been backed by a strong relationship with strategic partner China Railway Group Limited (CREC). 

“We are now looking forward to the next stage of our development journey, which will include further engagement with stakeholders, preparing our secondary approval applications, reaching a final investment decision together with CREC and, ultimately, achieving financial close,” Iron Road MD Andrew Stocks has said.

The only remaining primary government approval for the CEIP is under the Commonwealth environmental legislation. The Commonwealth Minister for Environment and Energy will consider the assessment report provided by the South Australian government; a decision expected to be announced within weeks. 

The authorisations granted by the South Australian government are in response to Iron Road’s applications for a mining lease (ML) under the Mining Act, 1971 (SA) and Development Authorisation under the former Development Act, 1993 (SA) (Development Act), both in relation to the CEIP. 

Minister Tom Koutsantonis granted the ML for the CEIP mine for a term of 21 years.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Iron Road, tel +61 8 8214 4400, +61 8 8214 4440 or email admin@ironroadlimited.com.au.