Flinders Mines’ Pilbara iron project viable for 5 million mt annual output for 20 years

Tuesday, 18 January 2011 13:50:56 (GMT+3)   -  
SteelOrbis News

Emerging Australian iron ore producer Flinders Mines Limited has announced that, according to a 13-month pre-feasibility study, an AU$488 million development at the company's flagship iron ore project in Pilbara, Western Australia would be viable.

The pre-feasibility study undertaken by Sydney, Australia-based WorleyParsons, a technical, project and operational services provider for various sectors, suggests a 5 million mt per annum project running for 20 years that would be expanded in year five to an annual output of 15 million mt per year. The first stage would cost AU$488 and the second would cost AU$640 million, the study said.

The findings include plans for the commencement of design and construction in the first quarter of 2012, with first production starting early in 2014 from Flinders Mines' main Blacksmith tenement, one of its two, close-proximity tenements in West Pilbara.

Approximate minimum life revenue has been declared as AU$25 billion. Average life-of-mine cash operating costs are estimated at AU$35.32/mt, while an estimated net present value (NPV) of AU$2.2 billion has been determined.

Flinders Mines chief executive Gary Sutherland said increasing the annual production rate to 15 million mt would "significantly enhance" the project's profitability. "The outcomes of the prefeasibility study demonstrate a robust investment case and certainly underpin the potential for Flinders Mines to move to a definitive feasibility study," he added.

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