Name of the Project
Hawsons iron project.

Location
The project is located near Broken Hill, in New South Wales, Australia.

Client
Carpentaria Exploration.

Project Description
A prefeasibility study has shown the project to have robust economics for the production of ten-million tonnes a year of Hawson’s Supergrade, with a product specification of 69.9% iron for a mine life of 20 years. The ore is to be mined and processed on site, with the final mineral concentrate being transported by slurry pipeline to a rail head site near Broken Hill.

The truck-and-shovel mining method will be used for the prestripping and the early mine plan, while in-pit conveying (IPC) will be used in Year 5 once meaningful depths have been reached. The plan is to use the conveyor for the vertical lift and the trucks for horizontal movement, maximising the use of comparatively cheap electrical power, reducing truck hours and improving safety.

Following a prestrip of about 150-million tonnes, the life-of-mine waste:ore ratio is 0.40, dropping to near zero by Year 11.

A total of 1.41-billion tonnes of ore and 568-million tonnes of waste are mined after prestripping. A maximum mining rate of 152-million tonnes a year is expected to be achieved in Year 7. All major processing will occur in the magnetite concentrator at the mine site before transporting the concentrate in slurry form to the railhead for dewatering. Tailings will be thickened and pumped to a circular tailings storage facility, and single-cell and perimeter discharge will be used.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a post-tax net present value, at a 10% discount rate, of $1.09-billion and an internal rate of return of 17.8%.

Value
Preproduction costs have been estimated at $1.4-billion.

Duration
Not stated.

Latest Developments
The Hawsons iron project has been granted major project status by the federal government.

The elevation to this select status is expected to provide a smoother and potentially faster approvals process for the project.

Hawsons is one of only 13 other projects nationwide awarded this designation by the Department of Jobs and Innovation.

The major project designation is expected to promote international investment in the project, as it reduces the perceived permitting risks.

This status also means that the federal government’s Major Project Facilitation group will commit resources to assist in developing the project, coordinating and integrating federal and state permitting requirements and, where relevant, identifying any eligible government financial assistance.

Carpentaria is negotiating offtake-linked project funding with a number of customers, the company has said, following an oversubscription of the initial planned production at Hawsons, with nonbinding letters of intent obtained from several steelmakers and trading houses.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Carpentaria Exploration, tel +61 7 3220 2022 or email info@capex.net.au.