Australian iron ore company BC Iron Limited (BC Iron) has lately announced that the final results from the test pit bulk sampling program undertaken at its joint venture with Fortescue Metals Group (Fortescue), i.e., at Nullagine Iron Ore Project in the East Pilbara region of Western Australia, has exceeded expectations, with 12.07 percent higher in volume and grade than predicted.
Following the decision by Fortescue to fast track development of the Christmas Creek rail line, BC Iron will revise its original plans to start up at 1.5 million mt per year using public roads and instead move directly to a targeted production rate of three million mt per year. This will require the completion of the purpose built private haul road before first shipment, bringing forward some capital costs with the updated pre-production capital expenditure now estimated at $51.5 million. The previous pre-production capital cost was estimated at $43 million.
Following completion of trial mining activities, BC Iron, as manager of the joint venture, will now focus on project development activities which will initially include securing the final remaining regulatory and Aboriginal approvals in the lead up to mining, awarding of construction and mining contracts, as well as haul road, village and mine center construction.