Flinders Mines Limited has commenced a scoping study for the company’s flagship Pilbara Iron Ore Project (PIOP) in Western Australia.
The study will focus on the potential development of the Pilbara Iron Ore Project’s resources to produce a +60% Fe direct shipping ore (DSO) product at a sustainable rate of up to three million tonnes per annum. The project will utilise public access and third-party transport and export infrastructure where possible, to reduce upfront capital requirements.
The scoping study aims to define a development scenario for PIOP which will add considerable value to Flinders’ shareholders by focussing on:
- Accessing DSO grade ore with particular emphasis on low strip ratios and mining above the water table within the Delta and Paragon deposits (Figure 3);
- Minimising capital expenditure with contract mining, crushing and trucking, and utilising public roads and third-party ports;
- Assessing options to reduce PIOP’s carbon footprint through renewable energy and other initiatives;
- First ore to market in 2025, subject to regulatory and third-party approvals, and financing; and
- Proactive engagement with Traditional Owners to consider value-adding partnership opportunities.
A key element of the study is consideration of the potential to transport product from PIOP to Karratha via the Manuwarra Red Dog Highway, which is being upgraded by Main Roads Western Australia (MRWA) from Karratha to Tom Price.
In addition to mining, processing and transport components of the study, Flinders is assessing various port facilities to provide suitable export options. Early engagement with Pilbara Ports Authority has commenced, including a recent tour of the Utah Point Bulk Handling Facility in Port Hedland, which currently has a licence to export 24 million tonnes per annum of bulk material, predominantly iron ore.
Flinders has also engaged with other port operators and developers which may provide more attractive long-term options for export capacity, potentially at rates above three million tonnes per annum.
The results of the study are expected to be released in the third quarter of 2023 and will provide a “base case” scenario for the development of PIOP. Following this, Flinders intends to commence a pre-feasibility study (PFS), with the aim of refining capital and operating costs, plus evaluating project enhancements with an emphasis on lowering carbon emissions while creating a sustainable long-term iron ore business.
Potential value adding project enhancements include hybrid on-site power (most likely solar PV) and electrification of mining and long-haul trucking fleets. In addition, the PFS will develop a mining plan for the recovery of ore from the Blackjack and Champion deposits, which are located immediately to the west of the Delta deposit and not currently contemplated in the Scoping Study.
Flinders’ Managing Director and CEO Mr Steven Michael said the study will redefine the project to achieve the ‘right size’ for the company with a focus on speed to market and lowering upfront capital, while leveraging off the considerable work already completed at PIOP, including state and federal approvals, native title agreements and approximately 190,000 metres of drilling.
“Within PIOP’s large global resource base, we are now looking at initially developing higher grade pits within the Delta and Paragon deposits which are expected to provide sufficient ore to demonstrate the economics of a lower tonnage, higher grade development compared to previous alternatives considered for PIOP.”
“Over the coming 12 months, the primary aim for Flinders is to progress the various technical and financial studies for PIOP to ensure the project is producing iron ore in 2025. We will do this in conjunction with the Traditional Owners on whose lands we work – sharing the benefits a close partnership can deliver.”
