PERTH (miningweekly.com) – ASX-listed Centrex Metals has reduced the development cost of the Port Spencer project, in South Australia, by more than A$100-million after studying a new design option based on new CSL transshipment technology that has been proven in the Whyalla for iron-ore exports.

The CSL technology comprises self-powered, self-docking vessels that replace traditional barge and tug arrangements, and also eliminates the need for tug berthing facilities.

Centrex explained on Thursday that the transhipper would load Cape-class vessels anchored around one nautical mile offshore in a water depth of 23 m. This depth would also allow consideration in the future for larger vessel sizes, if warranted.

The transhipper would also be capable of loading smaller Panamax-class vessels required for grain exports.

Centrex said that the option significantly reduced the initial capital required for Port Spencer, but retained the ability to increase capacity in the future to handle foreseeable bulk export volumes from the Eyre Peninsula, through the use of larger or multiple transhipper arrangements.

The initial Port Spencer prefeasibility study estimated that the project would require a capital investment of A$250-million, with the proposed port capable of handling up to 20-million tons a year of product, with further expansion possible, and would comprise a 500-m-long deep-water jetty, ship-loading facilities, storage areas and associated infrastructure for the export of iron-ore and grain.

The second stage of the development included the addition of the Eyre iron magnetite joint venture processing plant, located near the town of Koppio, a 40-km-long slurry pipeline and a return water pipeline to the port, dewatering facilities, a magnetite concentrate storage shed and a modular desalination plant.

The iron-ore developer said on Thursday that the new CSL transshipment option would require a capital investment of A$142-million, which included both onshore and offshore infrastructure to handle the CSL transhippers.

The onshore design provided site-work for start-up iron-ore volumes, from Centrex’s own projects and joint ventures in the region, delivered via slurry pipeline and road, while still retaining full expansion capability for third-party users, and allows for the implementation of a rail loop if required in the future.

The design also included sufficient space for a 20-gigalitre-a year-desalination plant to support future magnetite iron-ore concentrate operations in the region.