Aquila Resources revises cost estimate for West Pilbara iron ore project

Australian miner Aquila Resources Limited has announced that it has revised the capital and operating cost for its West Pilbara iron ore project.
 
Aquila is planning to cut spending after total project cost estimates increased to A$7.4 billion from A$5.8 billion. The operating costs forecast also increased to A$24.20 per dry metric ton (dmt) of iron ore from A$19.48 per dmt. The largest impact on operating cost has been the decision to outsource the mining operations to a contract miner. The company identified possible savings of up to A$2.4 billion.
 
Aquila has so far invested over A$460 million in the project 50 percent owned by Aquila, which comprises an integrated mine, rail and port development, and which is intended to bring a significant 30 million mt per year of new iron ore supply to the seaborne market.